A company that works for a wholesaler marketing the same type of product in the same way.
It is carried out through an agreement between the franchisor and the franchisee, where it is established that the former assigns the rights of use and exploitation of a specific name or brand to the latter.
In exchange for the assignment, the franchisor receives a royalty and the franchisee the know - how, training and advice.
According to the International Franchise Association, it is estimated that approximately 4% of all businesses within the United States are franchises.