A franchise is referred to as a business started out of a set business with an established brand, as an expansion of the franchisor's proprietary business. This type of business strategy is generally adopted by the company to capture and increase its market share.
Franchising is like a contractual relationship. The proprietary business owner and a budding entrepreneur come to a mutually beneficial agreement and run the business making a win-win situation for both the parties.
For the consumers, a franchise is a chain of an original business, they are not aware of who is running the business, all they see is the quality of the products and services.