Franchise Information - Know before you Buy!
You are thinking about starting a franchise. This could be one of the most significant financial investments you have ever made! Without the proper training and knowledge, you could end up in a lot of trouble. That is why we're here! At YouFranchise.com, we believe that every aspiring, and experienced entrepreneur would benefit from a resource that is focused on providing them with what they need to know in order to succeed.
What exactly is Franchising?
Franchising in a nutshell
Franchising comes from the French word for honesty, or freedom. Franchising is a way of operating a business where a franchisor develops a method of doing business that is proven to work. The franchisor then licenses the trademark to a franchisee(you). This exchange comes with a recurring payment and sometimes other fees such as a percentage of the gross sales as well as the annual fees. On top of that, there are several other factors such as national franchise support or international support, advertising and training services. These are typically made available by the franchisor, and could even be required from the franchisees. The franchisor may also require to audit the franchisee's books from time to time, as well as surprise checks on top of the usual periodic checks. The franchisor could cancel or not renew the franchisee's franchise rights upon failure of such tests.
Franchise, franchise outlet, or a chain store are different ways of referring to a business operated under a franchise agreement.
As published in the Financial Times, franchise business sales do not translate into US national product. If they did, they would likely rank as the 7th largest economy in the world.