How does the franchise work?


Ever find a Starbucks down the street from another Starbucks? Although the coffee super-giant is not technically a franchise, it is clear that there is strength in numbers. After all, countless global companies use the franchise system.

How do franchises work and why are there so many of them? The model allows a franchise to create a tried and true business with a family brand. This makes commercial success much easier to achieve.

Video credits to FinLit YouTube channel





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    How does the franchise work?

    Comments 19

    1. WOW! NICE JOB REALLY GOOD VIDEO I LIKE I SMASH LIKE BECAUSE I THINK THIS VIDEO GOOD

    2. Really? The franchiser agrees not to open another location nearby? I worked in a franchised burger king, and there were two other Burger Kings a short walk away, one was operated by Burger King itself and another was operated by a different franchisee. It would take a few minutes to walk between them.

    3. Franchising is a way for successful businesses to expand rapidly, nationwide or worldwide. All franchises begin with a good concept that is easy to copy from location to location. For example cheap fast burgers and french fries or donuts.

    4. hi everyone ,if anyone else needs to find out about franchise and business opportunities try Wondsting Franchise Helper Wiki (Have a quick look on google cant remember the place now ) ? Ive heard some interesting things about it and my brother in law got amazing results with it. 

    5. Привет всем, кто ищет транскрипт этого видео. Вот он:
      Franchising is a way for successful businesses to expand rapidly, nationwide or worldwide. All franchises begin with a good concept that is easy to copy from location to location. For example cheap fast burgers and french fries or donuts. The when a business decides to expand by franchising their concept, they allow other entrepreneurs or franchisees to buy the rights to open up an identical business helping the franchisor to expand and letting the franchisee become the owner of the new location. The franchisor makes money three ways from the franchisee. The first way is when the franchisee buys right to open up the business the franchisor and franchisee enter into a master franchise agreement under this agreement. Under this agreement the franchisee agrees to buy all materials for the business from the franchisor, from thing like the business and furniture to the hamburger patties in the band needed to make the hamburgers. This is the second way the franchisor earns money from the franchisee. Lastly the franchisee also agrees to pay the franchisor an ongoing fee equal to an agreed-upon percentage at the sabs. The franchisee makes money because he is able to keep all the remaining profit after these costs. However the franchisee must run the business in accordance with strict guidelines, detailed in an agreement such as how to run their store location and how it must look. In exchange in all these requirements the franchisor agrees not to open up another store to close the existing store so the franchisor does not have to worry about competition.  Also the franchisor agrees to provide all advertising and marketing campaigns.
                      Now back to burgers, fries and donuts. McDonald’s and Dunkin Donut add the most well-known franchises that exist today. Across the globe customers can rely on a consistency of McDonald products because all McDonald’s ultimately follow the same guidelines in purchase their food from the same franchiser. Or the taste of a Dunkin cup of coffee as their purchase the same coffee. Franchisers benefit from having various store owners because they can expand their businesses faster and easier and at the same time people are paying them to help them expand. Also local store owners know their customers so they can make smarter business choices to keep the franchises profitable. For more information on franchising visit finlitTV.com.
      Успехов:)

    6. Great you define it well, and this is how our business works,

      if you wanna franchise our business please do click the link, thanks 🙂

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