Business franchising is a great way to grow a business. It also gives entrepreneurs the opportunity to run their own business, to an extent. This video will outline the basics of franchising and how it works.
The process starts with a business owner, or franchisor. The owner has a licensed brand and/or products. They will extend this license to other individuals who are then allowed to sell the brand/products of the original franchisor. The most common example is a national restaurant chain, such as Applebee’s. There is a corporate center, but the individual branches are maintained and operated by separate individuals who have purchased the license.
The franchisees pay the franchisor an initial payment and regular fees in exchange for the opportunity to sell their brand. You may be wondering why pay the fees? It’s easier to start a business with a franchise than on your own. It offers a better return on investments and gives the franchisee access to the franchisor’s knowledge and experience.
The franchisor offers an existing business model, an established brand, an operating system, training, a marketing strategy, and ongoing support with any issues that come up along the way. For more information, check out the video in the link above.