Franchising can be a way of distributing products or services. At least two classes of people are involved in a franchising system:
1) The marker, which creates the trademark or brand and a trading system.
2) Indicative, that the franchisee and often pays the initial fee for the right to trade with the name and system of the franchise. Technically, the contract is binding on both parties to the franchise.
But the term often means the actual business in which the franchisee operates.
There are two different types of franchise relationships.
The franchise business model is the most recognizable type of franchise.
In a commercial-format franchise, Mark Spar provides not only the brand, products and services, but also a complete system for managing the trade.
The brand generally receives development location and support, operating guides, training, brand standards, quality control, a marketing strategy, and business consulting support from the brand.
Traditional whole franchise sales or product distributions outweigh the commercial format of the franchise, although the franchise is less well known.