franchise business model

A franchise business model allows an individual (franchisee) to operate a location of an established brand (franchisor) by licensing the right to use its name, systems, and support. The franchisee pays upfront fees and ongoing royalties, while following the franchisor’s proven procedures and branding standards. This arrangement enables the franchisee to benefit from the brand’s reputation and support, reducing initial risks. In return, the franchisor expands its market through multiple franchise locations, earning consistent revenue streams while maintaining control over brand quality and operations.