The ever-changing business climate has produced different mechanisms in starting and developing businesses right away to catch up fast in the competition without hitting unmanageable risks. Franchising, one of the oldest but still most practiced mechanisms, has been feeding millions of business enterprises in various industries. In the US, more than 4 percent of registered businesses are franchises and around 70 of those contribute at least $1 trillion to the country's annual revenues. It provides business owners an opportunity to find a clearer path to success in a shorter time.

The two key-players in franchising are the franchisor (franchise seller) and the franchisee (franchise buyer). A franchise is a right or license to use a certain business model to gain from its established prominence. The franchiser may offer the business model according to the needs and financial capability of the franchisee. After the sale, both play continuous roles and obligations throughout the lifetime of a franchise agreement. Oftentimes, the franchisee has no permanent and complete control over the business, except for the determined profits.

Because of several interests to protect, the franchisor is concerned with its trademark being preserved at the most. It secures protection over the trademark by strictly requiring the franchisee to carry out the services for which the original business is known. That way, the franchisee shall not create confusion on advertisements and actual services, which eventually leads to low customer satisfaction. The franchisee employs the standards generally implemented by the franchisor in its venture.

The franchisee must have nearly copied the elements and pattern used in the original business, including the uniforms worn by staff, the logo, and their required location based on implementing marketing standards and the equipment used in making the product or in servicing. Compared with retailing, businesses taking advantage of franchise opportunities will not have full control of the venture. In one way or another, this is beneficial as there will be no need for designing and developing original strategies.

On the other hand, the franchisor giving out franchise opportunities is responsible for providing training within an adequate period, considering the difficulty of learning complex equipment operations. Most of the time, franchisees are provided with manuals and a special team that will regularly refresh employees of the disclosures and service guidelines. Some franchisors even provide online training for staff for more efficient learning.

Both parties are guided by a franchise attorney during the negotiation. This is to prevent conflicts in the contract that is normally unilateral in favor of the franchisor. Most franchise opportunities involve a non-negotiable contract, although franchisees can still point to federal and state laws in case of conflicts.