What is a strategic alliance?

A strategic alliance is an arrangement between two franchisors to form a mutually beneficial business relationship while still retaining their independence. While similar, it is less binding and more flexible than a joint venture agreement, which would create an entirely new business between the two entities.  

The potential benefits of a strategic alliance include expanding into a new market, expanding a product line, or developing a different advantage among the market. The arrangement helps two franchisors work toward a common goal and can benefit both parties in the same way or diverse ways, but equally.