Why do fast food companies usually franchise their restaurants instead of operating the locations themselves?

Question

Why do fast food companies usually franchise their restaurants instead of operating the locations themselves?

In: 101

Answer 1

Way more profit. They’re essentially leasing their name and trademark, etc. The franchise owner has to run the business because he invested his own money in it. The franchise owner also has to pay yearly fees to corporate *and* in some circumstances (if not all) corporate gets a percentage of the sales.