A franchise system such as McDonald's is an example of a pure franchise distribution system.
A franchise (or franchising) is a technique of selling goods or services that involves a franchisor who creates the brand's trade name and business model and a franchisee who pays a royalty and frequently an upfront fee to have the right to use the franchisor's name and system.
Franchisees leverage the power of franchising as a method to foster client loyalty, thereby increasing and retaining their customer base. Since the franchisee is familiar with the local market, expanding internationally is simpler and quicker.
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