This chapter reviews the previous literatures on franchising. The topic on franchising has received numerous support and attention from several researchers as a method or strategy of entering a new market. The literature review is important in this study because it shows what has been said and researched by others in order for the researcher to relate the previous ideas with the study findings. The advantages of franchising as a business model were studied to provide information to business owners and managers on how the model benefits both the franchisee and franchisor. In their studies, Michael (2003, p. 62) and Michael (2000, p. 500) stated that franchising is the best business model for startups where capital is limited and the managers are interested in freedom in the management of their businesses. These studies were conducted in both 2000 and 2003 and they had the same focus. The aim of these studies was to ensure that managers and business owners get the relevant and adequate information on the importance and advantages of using franchising as a business model especially for startups.