What Is a Franchise?  A franchise is a type of license that grants a franchisee access to a franchisor's proprietary business knowledge, processes, and trademarks, thus allowing the franchisee to sell a product or service under the franchisor's business name. In exchange for acquiring a franchise, the franchisee usually pays the franchisor an initial start-up fee and annual  licensing fees . KEY TAKEAWAYS A franchise is a business whereby the owner licenses its operations—along with its products, branding, and knowledge—in exchange for a franchise fee. The franchisor is the business that grants licenses to franchisees. The Franchise Rule requires franchisors to disclose key operating information to prospective franchisees. Ongoing royalties paid to franchisors vary by industry and can range between 4.6% and 12.5%. HZiQZProjectUganda (DALIFAiSPECIAL) Rollout Plan Franchise Understanding Franchises When a business wants to increase its  market share  or geogr