Franchising
 

Many popular and well-known business chains, such as fast food restaurants, use a practice known as franchising. In franchising, someone who wants to open a store or a restaurant pays an established company for the right to use the company’s name and sell the company’s products. Selling an established, in-demand product that has immediate name recognition benefits the new business by reducing the risk that the business will fail. In exchange, the new business agrees to follow all of the standard practices of the company with the name it wants to use.