How Franchising Works : Mcdonalds Franchise Example

Starting a business can be a daunting task, but for many entrepreneurs, franchising offers a way to start a company with the support and guidance of an established brand. But what exactly is a franchise, and how does it work? we'll take a closer look at the basics of franchising and how it can benefit franchisees and franchisors. A franchise is a type of business model in which a franchisor (the company that owns the brand) grants the right to use its brand name, products, and services to a franchisee (the individual or company that operates the franchise) in exchange for a fee. The franchisee is responsible for operating the business and following the franchisor's guidelines and procedures. When starting a franchise, the franchisee typically pays an initial fee to the franchisor, which covers the cost of training and support. The franchisee also pays ongoing royalties to the franchisor, which are typically a percentage of the franchisee's sales. In return, the franchisor provides the franchisee with the necessary training, support, and resources to operate the business.

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