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Franchise Business

What is Franchise Business?

A franchise corporation leases the right to offer the goods or services under its trademark and business model to other businesses. A franchise business's owner is known as a franchisor, and the operator is known as a franchisee. Rather than being owned by the parent corporation, many famous food chains and supermarket stores like McDonald's and Jiffy Lube are run by franchisees. A franchise's reputation is primarily based on its well-known brand identity. Many people stick to franchise company franchises they've already patronized because they know they'll get the same great service no matter where they go.

The Franchisor charges the franchising fees, at a certain rate as per the name and fame of the parent (franchisor’s) businesses, from the Franchisees to pay. And in return, the franchisee - that can be a person, a group of people, or an organization, utilizes the expertise, technological aspects, and the processes recipes for business growth and development. The franchising fees and the franchising agreement are renewed from time to time as agreed to by both the parties – the franchisor and the franchisee. Moreover, operational manuals, processing systems, higher level of staff training, site location help, target market serving tools, marketing strategies guidelines, management of specialized human resource monitoring, campaign advice, and evaluation of the franchises. The said activities are taken into practice from time to time and on regular routine repeat basis as per the requirement of the time and business concerns.