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I am thinking about franchising. What is a franchise?

A franchise must have the following elements:

  • The franchisor allows the franchisee to use a name which is associated with the franchisor.
  • The franchisor exercises continuing control over the franchisee.
  • The franchisor provides assistance to the franchisee.
  • The franchisee periodically has to make payments to the franchisor.
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