How does a franchise operate?

Answer 1

The franchisor allows franchisee to use its brand or names.But it controls continously on franchisees that they must follow the same standard of operation of the store.It sends assistances to franchisees to help them accounting and purchasing system.Franchisees need to pay a fixed periodable fee to franchisors for trade mark patent,promotional and advertising expenses and method pf operating of the business.

The advantage of franchise is that franchisor can expand its shops in a relatively short period of time.Franchisees can learn the way they operate from franchisors and make cost-effective operation by bulk purchasing,effective advertising and promotion of stores.