If you want to go into business but find yourself stuck or confused by the nuances, you may be asking yourself, “What is a franchise?” There are three basic types of franchises that you should become familiar with. A distributorship is a franchise type where a parent company grants the right to sell its products, such as to a car dealership (Ford, Toyota, etc.). Brand name licensing gives licensees the right to use the parent company’s trademark in the operation of its own business, such as beverage companies and sports franchises. Finally, business format franchises like fast food locations and convenience stores are those that most people are familiar with.

There is no reason to wrestle with the question “What is a franchise?” When you visit Franchise.com, you will find helpful articles and community information so you can begin on the road to franchising today. Learn about getting into the business or franchising the current business you own.