Directorate of distance education

How Franchising Works
If you are thinking about buying into a franchise system, it is 
important that you understand exactly how franchising works, what fees 
are involved, and what is expected of you from the franchise company. 
An individual who purchases and runs a franchise is called a 
“franchisee.” The franchisee purchases a franchise from the “franchisor.” 
The franchisee must follow certain rules and guidelines already established 
by the franchisor, and in most cases the franchisee must pay an ongoing 
franchise royalty fee, as well as an up-front, one-time franchise fee to the 
franchisor. 
Franchising has become one of the most popular ways of doing 
business in today’s marketplace. In most states you cannot drive three 
blocks without seeing a nationally recognized franchise company. 
Advantages of Buying a Franchise
There are many advantages to buying a franchise. Some of these 
advantages are: 
➢
Corporate image
- The corporate image and brand awareness of 
the company is already established. Consumers are always more 
comfortable purchasing items from a familiar name or company 
they trust.
➢
Training
- The franchisor usually provides extensive training and 
support to the franchise owner.
➢
Savings in time
- Since the franchise company already has the 
business model in place you can focus on running a successful 
business.
There is a reason why franchising has been around for decades. It 
is a great way for individuals to own and operate their own business. If you 
are thinking about buying a franchise, do your homework, research the 
company, and you should consult with a franchise consultant or franchise 
attorney before making a final commitment.

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