{"id":35321,"date":"2022-09-26T14:05:12","date_gmt":"2022-09-26T07:05:12","guid":{"rendered":"https:\/\/adsmo.vn\/nhuong-quyen-thuong-hieu-la-gi\/"},"modified":"2025-07-18T17:18:21","modified_gmt":"2025-07-18T10:18:21","slug":"what-is-franchising-understanding-the-popular-business-model","status":"publish","type":"post","link":"https:\/\/adsmo.vn\/en\/what-is-franchising-understanding-the-popular-business-model\/","title":{"rendered":"What is franchising? Understanding the popular business model"},"content":{"rendered":"

Franchising<\/strong> is one of the most popular business models today. So what is franchising<\/strong> and where does the appeal of franchising come from to make it so popular? Let’s find out with ADSMO right away. <\/span><\/p>\n

1. What is a franchise?<\/h2>\n

A franchise<\/strong> is a business system in which a business owner (called the franchisor) grants another party (called the franchisee) a license to operate a business or distribute products or services using the franchisor’s business name and system for an agreed period of time, in exchange for a fee.<\/span><\/p>\n

A franchise fee<\/strong> is an upfront payment by the franchisee to the franchisor or an ongoing fee (comprising an agreed percentage of sales or profits) or both. Franchising costs are not cheap, so this is an ideal alternative business solution to building a franchisor’s chain of stores.<\/span><\/p>\n

Franchising is very popular in business because it helps businesses expand quickly. Some famous franchise brands are McDonald’s, Starbucks, Dominos, KFC, Pizza Hut, Burger King, 7-Eleven, Marriott International,…<\/span><\/p>\n

In Vietnam, franchising is also an attractive form of business in all industries from manufacturing to services, especially in the food, beverage and education sectors.<\/span><\/p>\n

2. Why is franchising so popular?<\/h2>\n

Here are some reasons to franchise<\/strong>:<\/span><\/p>\n