Since franchising as business model is relevantly new and just starting to grow in the Baltic region, there is no surprise that most people are not familiar with this concept. Franchising is a form of business organization where a company that has already developed successful business model (franchisor) enters into a contractual relationship with other company/private individual (franchisee) and allows the latter to operate under franchisor's brand name and usually with the franchisor's guidance in exchange for a fee.

Franchisor provides franchisees with the business knowledge, experience, access to the rights to the brand and sophisticated business model. The word "franchise" generally refers to a specific business concept and "franchising" is used to identify a model for business development in general.

Depending on particular franchise, obligations of franchisee may be very broad and strict, but in other franchise concepts a lot could be left for the franchisee’s decision. Franchise contract may be nominate franchisee with the rights to sell goods or services, technology, trademarks, know-how, an exclusive right of distribution in a particular region.

Franchising as business development model is very popular in Europe, North America, Asia and other regions of the world. Up to 5% of all U.S. businesses operate with help of franchising. Numerous global companies use franchising. Even in a relevantly small Lithuanian market such world-famous franchise brands as McDonald's, Holiday Inn, Zara, Jysk, Pizza Hut operated successfully. Their success stories show you how successful a franchise concept could be.

Please feel free to enquire more information franchising from us.