Also, what do these people do? What is the purpose of a franchisee and a franchisor?
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A franchisor is the owner of a particular trademark brand. A franchisee is a someone that pays the franchisor for the rights to use their trademarks to operate their own business. This can be advantageous for the franchisor because they make money from their trademarks without having to run a business themselves. They get paid without taking any risk. This arrangement is useful for the franchisee because that trademark would make their business more popular as opposed to opening a generic no-name store/shop/restaurant.
As far as I can tell although I have no direct experience
The overall business is the brand let’s call it shoppe
To open your own shoppe you have to buy it I believe usually with a yearly subscription. You have to follow the rules and regs of shoppe head office but your profits are your own. You are essentially self employed abs you pay your workers from your profits
There are many different types from sing and sign baby groups, to coffee shops, to restaurants
Franchising is a form of marketing and distribution in which the owner of a business system (the franchisor) grants to an individual or group of individuals (the franchisee) the right to run a business selling a product or providing a service using the franchisor’s business system.
See www.franchisedirect.com.
Franchising is a method of starting, running, and expanding a business. In this case the franchisor creates the initial business, trademark, business processes, etc. The franchisee, who owns a particular store, then pays a fee to use these things for that store.
For the franchisor, this arrangement allows them to expand more rapidly and with less risk than if they directly owned each store. For the franchisee, it streamlines the start-up and operation of their business, since someone else has done that work for them.
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