Franchising has been the way of doing business nowadays. Majority of the well-known fast-food outlets operate under a franchise agreement. Basically, franchising is a form of licensing by the owner of franchisor of a product or service distributed through affiliated dealers or franchisees. Through, franchise agreement, holder of the right or the franchisee is often given exclusive access to a defined geographical area.

Big food chain companies like McDonalds, Jolibee, Shakey’s, Wendy’s and others have relied on franchisees for its success.

Franchising has brought in new technology for local suppliers. It also reduces the entrepreneur’s business risk because the product has been proven in the market and need not go through product tests. The businessman is assured of the food quality because it has gone through stringent quality control processes.

Some company owner provides support in terms of site location, kitchen lay-out, operational training, marketing and advertising for free. On the other hand, franchisees are sent to the main branch for free to learn the latest technology in the food business.