Establishing and managing a franchise system

The business of a franchisor involves franchisees investing their own capital, working hard in the franchised businesses and making payments to the franchisor, usually including both initial franchise fees and an ongoing percentage of turnover. Accordingly, the franchisor receives payments for a business in which it has not had to invest, and does not have to run. Many franchisors have become very successful in conducting this business model.

However, establishing and operating a successful business as a franchisor is difficult, and many fail.

See Establishing and managing a franchise system.