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The phrase franchising is often a relationship between 2 parties which is the franchisor and franchisee. Well, let us begin with the roles of the franchisor. Basically, they are the ones who provide guidance for business, provide ongoing support to the franchisee, have substantial supply chain and an identifiable brand name. On the other hand, the franchisee finds a franchise for sale and lays down initial investment to the franchisor, which is what forming their partnership. The franchisee will provide increased brand awareness, extra profit and expansion for the franchiser.

 

The franchisee pays for business model and the brand name which has been a tried and tested method thus, if is made correctly, they should be a basis for future gains. Above all, the franchisee will have to pay a certain percentage of their gross income back to the franchisor that can be either monthly or yearly payments. The initial investment may take months before getting it back but still, it varies with the business sectors.

 

The multi-unit franchise opportunities model has actually increased considerably for the past 10 years and today, it's thought as one of the most profitable business structure in the world. According to recent studies, it has showed that franchises represent only around 1/10th of total number of businesses in world however, market shares that they have obtained is only a third.

 

When you are in the process of selecting your franchise, you must look carefully over the agreement as there can be different versions of it. For instance, it might differ by advertising and marketing as well as the amount of participation the franchisee will make in business decisions. There are other franchises similar to restaurants which implement a stricter regulations to how they run their business while some other franchises give franchisees lots of options like changing the pricing and offering other products as they see is suitable for them. For more facts and information regarding restaurant franchises, you can go to https://en.wikipedia.org/wiki/Eat_(restaurant).

 

The franchise opportunity can be bought off a bit, all the instructions and pieces are there and therefore, it is all up to the franchisee on how they will put it together and build their business. The instructions will include all important information such as terms and conditions, pricing structure, ways to market the product or service, contract length and various other criteria to do in operating the franchise.

 

In addition to that, it is common for potential restaurant franchising to go through training to ensure that they are well aware of the business and that they have the necessary tools to take over the franchise and find success.