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What is Franchising?

(Meaning: Freedom) A method of business expansion whereas the franchising company uses other people’s capital in exchange for rights to operate a proprietary system to expand company outlets.

Franchisor Responsibilities:

1. Support of franchisees
2. Evolvement of Systems
3. Human Resources
4. Marketing
5. Public Relations
6. Expertise

Franchisor Revenues:

1. Royalties
2. Franchise Fees
3. Construction Revenues
4. Administration Fees
5. Call center Support (industry specific)
6. Supplier Concessions (industry specific) 

7. Supplier Volume Rebates

Experts know that the number one criteria for expansion through franchising is the ownership and management of the business to be franchised.

Certainly the business needs to meet certain (franchise) criteria, but without the vision, commitment, knowledge and adequate investment of ownership and management franchising can be tremendously difficult. Network Franchising International can help.

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