Basics : What is a Franchise?

[swarkr]

What is a Franchise? I am quite confused about exactly what it is.

[LinkAdage]

Basically when you buy a franchise you are buying the rights to use the name of another company. You are also buying a "proven system" the franchise will give you all the information you need to start your business, which makes the learning curve of a new business much shorter.

In return for all this you agree to follow some rules and pay them a % of your gross sales every month.

Hope that helps

Shaun

[OldJack]

A classic example is Subway or McDonalds.

You pay them a certain startup fee and in return you get: Your own location, training, manuals, the brand name, the system, marketing etc. You also get ongoing support while running the business.