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The Basics on How Business Franchising Works
August 8, 2022
When you pull up the drive-through, you may not know that you are part of a franchisee business model. But do you know what this term means or how it works? A franchise is a business model where one company owns the trademark rights to a brand name and then sells those rights to another company that operates the actual store under their name. So the franchisor (the original owner) has already established a brand name, and now they sell that right to someone else. That person can then use that brand name to operate a store. They can also use the same logo, and they can even use the same menu items.
The only thing the franchisee cannot do is change the restaurant’s name. This is why it is important to choose your franchise carefully. You need to find a good fit between yourself and the brand name. If you are not a good fit, you could have a bad experience. There are many different types of business franchising out there. Some are very simple while others are much more complex. There are even franchises that offer both food and retail services. For more information, contact a franchising firm you can trust.