Entrepreneurs and business owners in California might be interested in considering the benefits that franchising offers. Franchising involves a franchisor allowing a franchisee the right to use a trademark, trade name, brand, concept or business model under specified terms and conditions. Under a typical franchise agreement, the franchisor will provide an array of resources that may include assistance with obtaining financing, training, marketing and other aspects of the operation.
A franchise is a legal agreement by which a business is allowed to use the name, service mark, advertising symbol or trademark as an identifier under which they do business. When a business purchases a franchise from a company, the business will then have formed a commercial and legal relationship with the franchisor.