Franchising is a contract based on the continued collaboration between the franchisor, who is highly experienced in a particular industrial, commercial or service-related sector, and the franchisee, an independent entrepreneur who wishes to enlarge his business and increase the sales of his company.

A franchisee in an entrepreneur who, by signing a contract, joins the franchising system and commits to managing his/her store according to the established conditions.

A franchisor is a company (or an entrepreneur) that has set up a distribution organisation and that gives others its know-how. It (or he/she) checks and coordinates the way the organisation works, by supplying goods and services.

It is paid by the franchisee to the franchisor (it can be a deposit or a non-refundable fee) as partial payment of the organisation expenses related to the execution of a franchising project.

It is the technical and commercial knowledge related to the production and marketing of a certain product or service.