What is a franchise?
There are many different types of franchises. Many people associate only fast food businesses with franchising. In fact, there are over 120 different types of franchise businesses available today, including automotive, cleaning & maintenance, health & fitness, financial services, and of course photographic, to name just a few.
How does a franchise work?
If you are thinking about buying into a franchise system, it is important that you understand exactly how franchising works, what fees are involved, and what is expected of you from the franchise company.
An individual who purchases and runs a franchise is called a 'franchisee The franchisee purchases a franchise from the 'franchisor' The franchisee must follow certain rules and guidelines already established by the franchisor, and in most cases the franchisee must pay an ongoing franchise royalty fee, as well as an up-front, one-time franchise fee to the franchisor. Franchising has become one of the most popular ways of doing business in today's marketplace. You cannot drive down most high streets without seeing a nationally recognized franchise company.