Why franchising is a smart business model: a comprehensive review

Entrepreneurship is the act of starting and running your own business or the creative desire to work on your own projects. The notion of entrepreneurship has evolved significantly over the last few decades, and it cannot be disregarded today. Many businesses have emerged, and the most successful are those that rely on a sound business model. The franchising business model is one solid business model that has proven its effectiveness in recent years. Franchising is a type of marketing and distribution in which the owner of a business system (the franchisor) provides the right to run a business by selling a product or delivering a service using the franchisor's brand and business system to an individual or group of people (the franchisee). This concept is well-known in the fast-food business (which has several famous franchisors such as McDonald's and KFC). This paper provides an overview of franchising: what it is, how it evolved, and what the pros and cons of franchising are for both the franchisor and the franchisee.