Introduction to Franchises
Franchising is a system used by business owners to distribute
products and services. A franchise is the relationship between
the franchisee and the business owner. A major advantage
is operating a business under a recognized and trusted brand
name. What a franchisee is purchasing is a tried and tested
business model that works. Dunkin’ Donuts doesn’t
franchise doughnuts or coffee, they franchise a proven system
that is a consistent delivery of product, prices and customer
experience from location to location.
Purchase a Franchise
When someone buys a franchise the business (called the
franchisor) licenses it’s trade name and it’s
operating methods to a person or group (the franchisee)
who agrees to run the business according to the franchise
agreement.
There is usually a franchise fee that is paid when the franchise
agreement is signed. The franchisee is then given training
and advice on selecting a location and choosing an appropriate
office or store space. There is also an ongoing royalty fee
for the use of the trade name and methods.
Vew more detailed information for buying a franchise. |
