Post by pricejackson on Jun 12, 2019 1:28:13 GMT
For anyone unfamiliar with franchising, a franchise is a business that lends its name, logo, and full-on support to others who buy into the franchise and open their own location or branch.
Franchisor: the owner of the corporation or umbrella business. In our example above, McDonalds corporate is the franchisor. The franchisor maintains certain bits of control over the franchise branches, like branding.
Franchisee: the owner of one of the locations under the umbrella corporation. The franchisee pays a one-time fee to the corporate owner, usually to cover the costs of onboarding and getting the new business set up (a new McDonalds location costs about $1 million). Then, they pay a percentage of their profits or revenue, depending on the arrangement, to the franchisor in exchange for their ongoing support and use of the brand.
Franchisor: the owner of the corporation or umbrella business. In our example above, McDonalds corporate is the franchisor. The franchisor maintains certain bits of control over the franchise branches, like branding.
Franchisee: the owner of one of the locations under the umbrella corporation. The franchisee pays a one-time fee to the corporate owner, usually to cover the costs of onboarding and getting the new business set up (a new McDonalds location costs about $1 million). Then, they pay a percentage of their profits or revenue, depending on the arrangement, to the franchisor in exchange for their ongoing support and use of the brand.