What exactly is a franchise?

When one hears the word franchise, the first thing that comes to mind is the well-known brands in one’s town or suburb. In Australia alone, there are 1,100 franchised brands and they run over 80,000 franchises. Franchising business got a head start in Australia in the 1970s. Nowadays, one can find a franchise for nearly all products or services. Let’s take a closer look at what franchising means: Franchising may be defined as an ongoing …

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How does franchising work?

Franchising is one way of expanding a business. When a business owner decides to franchise, they give the franchisees a license to operate a business using their brand and business model, in exchange for a franchise fee. The terms of this franchise fee vary depending on the user-case that we consider. It may be an initial payment or an ongoing cost as a flat fee or a percentage of the turnover. Franchising is a mutually …

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