Franchising

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Franchising

A way for a business to start up is to go into a term called franchising. This is when a sole trader or company buys into an existing business and can start trading under that name. 

A franchisee is the person/ people that buy the business name. 

A franchisor is the compeny that sells the right to the franchisee. 

Opening a new franchise is usually less risky than setting up an independant retailer. This is because the franchisee is adopting a proven business model and selling a well-known product in a new local branch. 

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