Franchising is a smart way to start a business, but a number of important decisions must be made before investing a large amount into buying one. In this guide to buying a franchise, we'll understand what a franchise is, how a franchise runs its business, and the steps needed to buy a franchise. What Is a Franchise? A franchise is a license that permits a product or service to be sold under the franchisor's brand name while also providing access to the franchisor's unique business knowledge, methods, and trademarks. To open a franchise, the franchisee usually pays the franchisor an upfront start-up fee as well as annual licensing costs.They offer their business model, intellectual property, patented name, reputation, and credit to another party called a franchisee, who uses the resources in turn to start a business according to the existing system. Franchise vs. Starting from Scratch Starting one's own business is very different from owning a franchise. When you start your own business, you build everything from scratch. You decide the name, logo, and brand style. You manage the creativity, execution, and everything that goes with it.Starting your own business is also a long process. You have to figure out everything from…