Aug 02 2010

What is a franchise?

Category: Business & Economy

Answer:

A franchise is not a business type like a corporation, partnership, or LLC. It actually refers to an agreement between a franchisor and a franchisee. The franchisor is usually a corporation that has developed a turnkey business solution that gives individuals or franchisees, the ability to open a similar business under their corporate umbrella. The franchise agreement will authorize use of the franchisor’s trademarks, service agreements, and other identities in exchange for a front-end fee and a percentage of sales. The franchisee will often receive other benefits that a typical start-up would not, thereby reducing much of the risk involved in starting a business.

Some of the more popular corporations that allow franchising are listed below.

See other top franchises at Entrepreneur.com


Tags: , , , ,


 

 

Challenge this Answer and/or Discuss