Answer: A franchise is a business model where a company (the franchisor) allows an individual (the franchisee) to operate a branch of its business using its established brand, systems, and support. In exchange, the franchisee typically pays an initial franchise fee and ongoing royalties.

Answer: The most common types are:

Product distribution franchises (e.g., car dealerships, soda bottling)

Business format franchises (e.g., fast food, retail, fitness centers)

Manufacturing franchises (e.g., food and beverage, industrial products)

Answer: Franchise costs vary widely depending on the brand, industry, and location. Initial franchise fees can range from a few thousand dollars to over a million dollars, plus additional startup costs for equipment, inventory, real estate, etc. Most franchises require liquid assets and a certain net worth level.

Answer: Franchisees operate their location within the guidelines and systems set by the franchisor. While they have control over day-to-day management, they must follow brand standards, use approved suppliers, and adhere to operational protocols.

Answer: Franchisors generally provide training, marketing assistance, brand guidelines, and ongoing operational support. They may also assist with site selection, equipment purchasing, and advertising.