A franchise owner, or a franchisee, is someone who buys a business that is part of a chain (think McDonalds, or Kentucky Fried Chicken), using the same name, trademark, product, and services. The business may be co-owned by the umbrella company and the franchise owner, or independently-owned.
Keeping this in view, what is a franchise and how does it work?
Generally, it involves the owner of a business (known as the franchisor) licensing to a third party (known as the franchisee) the right to operate a business or distribute goods and/or services using the franchisor's business name and systems (which varies depending on the franchisor) for an agreed period of time, in
How does it work when you buy a franchise?
The Franchise Business Model. A franchise enables you, the investor or franchisee, to operate a business. You pay a franchise fee and you get a format or system developed by the company (franchisor), the right to use the franchisor's name for a specific number of years and assistance.
What exactly is a franchise?
In its most simple definition, a franchise is a business opportunity that allows the franchisee (possibly you) to start your business by legally using someone else's (the franchisor's) expertise, ideas, and processes. More completely, a franchise is the right to use someone else's business system.