From the perspective of the Franchisor (the company selling the franchise-think Sylvan, Club Z, Kaplan, Kumon) franchising is a method of market expansion.

The Franchisor has an established, successful business, service marks or trademark, business systems, relationships with suppliers, etc., and instead of building another store from scratch (read starting a small business from scratch) they license their business model, systems, trademarks service marks, etc., to independent Franchisees (this would be you) to operate their business, in return for payment in fees and royalties from the Franshisee (you) to the Franchisor (them).

The Franchisor, uses the Franchisee to expand the distribution of their products (tutoring services in this case) to a wider market. The Franchisor is able to obtain more retail outlets without the traditional costs associated with starting another storefront.

In other words, Sylvan (as an example) could build their own stores all across the nation and keep 100% ownership along with 100% of the costs, or they could franchise and have the Franchisee pay for most of the costs along with royalties andfees for the opportunity to run the franchisor's business model.

It's never a bad idea to hire an attorney to review the documents, but make sure the attorney has some experience in franchising, not a general practice attorney, or an uncle who does divorces.

The last time I checked, all 50 States use the same Uniform Franchise Offering Circular.

The Circular is basically a document that makes the Franchisor disclose information and make representations, that if untrue, would subject the Franchisor to civil or criminal penalties

There are some legitimate partnerships, but they aren't legitimate if they're trying to mislead you.

If you're interested in a franchise, remember this: carefully read the Franchise Circular, and all attached documents and the attached franchise agreement or contract, ask relevant questions of the franchisor, and make sure to speak to other franchisees who are listed under the "List of Outlets" in the circular.

So, what is a franchise? Think of it this way. If you're honest, and someone wanted to go into business with you, wouldn't you answer their questions in earnest? If you had something to hide, how would you act?

Is this person acting that way? It's a gut level check, but you can generally tell if someone is hiding something.

Don't do business with people that give you this feeling. There's too much time and money at stake. The Franchisor should be happy to answer questions as long as they're not crazy questions.

Ask questions that are tangible, or measurable, and don't ask questions that call for speculation. No one knows what the future holds, so speculation usually leads to misunderstandings.