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Explain Franchise Business Model.

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Franchise Business Model.

A franchise is one of the best way of doing business. This business model consist of two groups i.e. the franchisor and the franchisee. The franchisor is the one who wants to expand his/her well known branded business and the franchisee is the one who wants to have the similar type of business. So, in such case both franchisor and franchisee build the business relationship where the franchisor gives the franchisee, his trademark, branding of the business business on the rented basis whereas franchisor gets the money for it. Both, the franchisor and franchisee earns a good amount of profit i.e. franchisee gets all the profit earned from the rented business whereas the franchisor gets the money of the rent with the expansion of his/her business.

McDonald, Pizza Hut, Burger King etc.