Franchise Business Model

The franchise business model involves a contractual relationship between a licensor franchisor and a licensee franchisee that allows the business owner to use the licensor s brand and method of doing business to distribute products or services to consumers. For the franchise partnership to succeed the buyer must be comfortable not only with the franchise model but also with the culture values and goals of the franchisor and vice versa. A franchise business model is defined as the structure of the business itself while a business plan is intended for funding purposes.

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This is because the brand is already established by someone else and because they require distribution support they generally choose the method of hiring franchises.

Franchise business model. In this business model there is a legal and commercial relationship between the owner of the company the franchisor and the individual the franchisee. As someone who plans to do business you must have a ready business plan to present when going to financial institutions to look for funding. A franchise is a type of business that is operated by an individual s known as a franchisee using the trademark branding and business model of a franchisor. A franchise is a fantastic way to do business.

In most cases of establishing franchises the brand equity the methods and all the procedures of the parent brand is adopted and the franchise just replicates what the parent brand.

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