There are many descriptions of what a franchise is. My own, I believe, is understandable and accurate:

"It is the granting of a license to duplicate a business system". Simple.

Expanding on that theme, what it should be is:

"The granting of a license which incorporates marketing, business and operations manuals to assist in the duplication of a proven and tested method of doing business, including all aspects of the business, which is profitable in a chosen location and operated by a suitably qualified individual or company."

I am a great advocate of franchising for a number of reasons. Some are:

• Someone has gone before you and carved a path through the forest.
   Chopped, sawn and cleared a route for you.
• You are never alone. The franchisor and fellow franchisees are on the
   same journey. A small (or large) clan of like-minded souls.
• The chances of you losing your money are hugely reduced. Latest
   figures show that only 2% of franchise businesses fail against many,
   many more who are forging their own path.

Some basic definitions relating to franchising:

• Franchise: The business covered by the franchise agreement.
• Franchisor: The owner of the franchise system.
• Franchisee: The other party to the agreement who operates a business
   under the terms and conditions of the franchise agreement.
• Term: The period of time covered by the terms of the franchise
   agreement.
• Franchise Fee: The amount charged at the establishment of the
   business by the Franchisor for the use of the intellectual property
   pertaining to and owned by the franchisor.
• Royalty/Service Fee: The payment made to the franchisor on a regular
   basis to cover services provided by the franchisor to the franchisee.
• Marketing Levy: The payment made to the franchisor, by franchisees,
   on a regular basis to cover marketing campaigns by the franchisor solely
   to attract more clientele and build brand awareness.