How Business Franchising Works – Small Business Magazine

How franchising operates and what it means.

This begins with the business person who is the owner, or franchisor. The business owner is licensed with a trademark and/or product. Licenses are granted to anyone who is able to then sell the trademark/products of the franchisor they originally hired. A chain of national restaurants, like Applebee’s, is the most popular instance. Corporate headquarters are maintained and each location is operated and controlled independently by licensed proprietors.

Franchisees make the initial amount and then regular fees to gain the opportunity to sell their brand. It’s possible you’re asking yourself why to pay for the costs? It’s easier to start an enterprise with an established franchise than to do it on your own. Franchisees can earn better returns from their investments, and have access to the know-how and knowledge of the franchisor.

A franchisor is a company that has an effective business plan and branding. They also offer education and help with any difficulties that might arise. For more information take a look at the video above.