Franchising is a form of technology transfer. Franchise business as we know it today has alternated over time. The success achieved by Ray Kroc and McDonald's is based on introducing strict frameworks and business practices that franchisees must adhere to and operate accordingly. Franchise systems can be classified and categorized into many ways: by sector, activities, relationships, required resources, and number of locations. By concluding a franchise agreement, the franchisor approves the recipient to perform business under the provider's name, but with the use of his knowledge and the manner in which this work is performed. Respectively, the franchise agreement gives recipient the right to sell or produce the provider’s products using his stamp and name. The franchise business contains various advantages and disadvantages. Some of the advantages or disadvantages are generally known even before contracting a business, so there are hence either need to accept or abandon such a way and system of doing business, while some disadvantages or advantages are potential and unnecessary, so they rather depend on the providers and their conduct of business.