Hello Everyone,
A franchise is a business arrangement where a company (the franchisor) grants another party (the franchisee) the right to operate a business under its brand, business model, and often, its products and services. In return, the franchisee typically pays an upfront fee, ongoing royalties, and agrees to follow the franchisor's established system.
Here's a more detailed breakdown:
Key Players:
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Franchisor: The company that owns the brand, business model, and intellectual property.
Franchisee: The individual or company who purchases the right to operate a franchise.
How it Works:
1. Franchisor Licenses:
The franchisor licenses the franchisee the right to use their trademarks, business model, and potentially their products and services.
2. Franchisee Pays:
The franchisee pays an initial franchise fee, ongoing royalties, and may also pay for advertising, marketing, and supplies.
3. Franchisee Operates:
The franchisee operates their business under the franchisor's established system, following their guidelines and procedures.
Benefits of Franchising:
Established Brand:
Franchisees benefit from the recognition and reputation of a well-known brand.
Training and Support:
Franchisors provide training and ongoing support to help franchisees succeed.
Proven Business Model:
Franchisees inherit a proven business model and operating system.
Group Buying Power:
Franchisees can benefit from the franchisor's bulk purchasing power for supplies and equipment.
Different Types of Franchises:
Business Format Franchise: The most common type, where the franchisee operates a business using the franchisor's entire business model.
Product Franchise: The franchisee primarily distributes the franchisor's products.
Manufacturing Franchise: The franchisee manufactures products using the franchisor's brand and formula.
In essence, franchising is a win-win situation where a franchisor expands their business through a network of independent franchisees, who gain the benefits of a well-established brand and business system.
Looking forward to hearing very soon from you
Regards
Dr.Afshan Hashmi
https://www.drafshanhashmisradio.com/
Direct descendant of Prophet Abubakr(RA) and thus relative
Of Prophet Muhammad(PBUH)
I am an orphan and a widow
Best-selling Author and Media Personality
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