A license to operate an individually owned business as though it were part of a chain is a franchise.

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A franchise is a business model in which an individual or group (the franchisee) is granted the right to operate a business using the trademark, products, and services of an already established company (the franchisor). The franchisee pays an initial fee and ongoing royalties to the franchisor in exchange for this right. The franchise model allows the franchisee to operate their own business while benefiting from the established brand recognition, marketing, and operational support of the franchisor.

A License to Operate an Individually Owned Business as Though