What Is A Franchise And How Does It Work?
Know Everything About Franchise Business We hear the term “franchise” now and then. But what is a franchise business in simple terms? A Franchise is A Method of Distributing Products or Services Involving a Franchisor and a Franchisee. You can consider it as a license. A franchisee can access proprietary knowledge about the franchisor’s business through this license. It also grants the right to trademark and sell products under the franchisor’s banner. The Franchisor Has Proprietary Right Over Their Trademark And Business System. You can’t paint the McDonald’s logo blue or make the background yellow instead of red. If you get their franchise, you must use their original trademark. You must follow the franchisor’s business system, too. You cannot introduce a new item on the McDonald’s menu if you wish. The franchisee must pay the royalty and often an initial fee. These fees guarantee the right to do business under the franchisor’s name and system From 2023, you must pay 5% royalty to Mc...