FRANCHISE HERALD
Thursday December 12, 2019

updated - December 12, 2019 Thursday EST

How does franchise work and What is it?

Jun 03, 2019 07:45 AM EDT | By Staff Reporter
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How does franchise work and  What is it?
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A franchise is a way of structuring a business. Generally, it involves the owner of a business (known as the franchisor) licensing to a third party (known as the franchisee) the right to operate a business or distribute goods and/or services using the franchisor's business name and systems (which varies depending on the franchisor) for an agreed period of time, in return for a fee. 

The franchise fee may be an upfront payment by the franchisee to the franchisor, an ongoing fee (e.g. an agreed percentage of revenue or profit) or a combination of the two. Franchising is an alternative to the franchisor building a chain of stores.

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TOP 10 FRANCHISES OF 2019

  • RANK
    FRANCHISE NAME
    STARUP COSTS
  • 1nc
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  • 2nc
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  • 3up
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  • 4down
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  • 5up
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  • 6up
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  • 7down
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  • 8down
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  • 9down
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  • 10down
    Pizza Hut Inc.
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