Franchising is a business technique wherein a franchisor authorizes well proven methods of doing business to a franchisee for a fee and a percentage of sales or profits. Franchising helps new business owners to avoid enduring the learning curve of operating a new business by taking advantage of a proven business model. This avoids the risk involved with opening a new business. Moreover, it is very easy to acquire loans for franchises as banks have learnt that it can be safer to lend to franchises.
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