The second party to a franchise agreement, this party owns and operates the actual business. They provide the capital, the labor and the perserverance to make the business go. The franchisee is obligated to the franchisor for royalities and commissions for the use of the franchisor name.
The primary reason for the franchise arrangement is the increased net profit for the franchisee in using the franchiser’s name, logo, brand, or trademark. The franchiser charges an upfront fee called a Franchise Fee, monthly […]