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Franchising an agreement between a Franchisor and a Franchisee where the Franchisee uses the trademark, trade name, and operating system of the Franchisor to conduct business. The Franchisor supports the Franchise units with Operational and Marketing and shares in the profits of that support through a regular Royalty payment and Initial Franchise Fee from the Franchisee.
The Franchisor is in effect a parent company that is allowing you to run an extension of their business for a fee, with the fiduciary duty of the Franchisor to provide the proper support to the Franchisee.
The Franchisee is the person who agrees to pay an initial fee and subsequent royalties to the Franchisor for the license to use its name, operating procedures, and vendors.
A Franchise Agreement is the written document signed by the Franchisor and Franchisee to agree to perform business together.
Franchise agreements can allow for varying rights of operation including Single Unit, Multi-Unit, Area Development, and Master Franchises.
A Franchise Disclosure Document (FDD) or Uniform Franchise Offering (UFOC) is the document required by the Federal Trade Commission (FTC) for each Franchise that articulates critical information about the concept for you to make an informed decision about whether you want to become a Franchisee of that system.
Yes, a Franchise acquisition may provide you and your family the opportunity to immigrate to the United States.
Yes, there are many recession proof or resistant franchise concepts available to fit your objectives.
Yes, there are several well established franchises that are interested in foreign development.
With the technology and information available to us, we are not limited by borders or geography.
Yes, the VetFran program is available for Veterans to finance their Franchise acquisition. Some Franchisors will also discount their Franchise Fee for Veterans.
In 2001, there were 767,483 domestic businesses owned and operated either by Franchisors or Franchisees which employed almost 10 million people, and generated almost $625 billion with a payroll of $230 billion. These businesses accounted for a significant percentage of the total establishments in their industries with 56.3% quick service restaurants, 18.2% lodging, 14.2% retail food, and 13.1% full service restaurants.
There has been a rise in service related franchises such as home repair, cleaning, business support, automotive, hair salons, senior care, child care and education, and telecommunications.
Since there are thousands of Franchises in existence, there is a wide range of investment levels. In general the total investment in a Franchise start-up could cost you $30,000 to $1,000,000 and beyond. A lot depends on real estate and equipment. Franchise fees typically range from $10,000 to $50,000 for a single unit.
The Franchise 500 is a listing similar to the Fortune 500 that Entrepreneur magazine publishes each year which highlights the top 500 franchises for the year based on performance measurements established by Entrepreneur magazine. For a recent listing go to Entrepreneur's Franchise 500 Listing
The Franchise Top 200 is a listing similar to the Fortune 500 that Franchise Times magazine publishes each year which highlights the top 200 franchises for the year based on performance measurements established by Franchise Times magazine. For the recent article go to Franchise Times Top 200 Article
