Some people prefer to buy franchises in place of starting their own business. The reason for this is because of the support you get from the franchisor. The franchisor is the parent company who allows you to franchise their business. Depending on the actual franchise, you can get assistance with site selection, product training, and expansion opportunities in your area.
If I Buy Franchises Is There a Franchise Fee?
Franchisors will charge a franchise fee to people who buy franchises. One misconception about franchise fees is that they are pure profit for the franchisor. However, this is wrong because the franchise fee is not pure profit for the franchisor. Instead, they take this money and invest it into advertising, marketing, and research and development. Your franchise fee actually helps support your own business. Many franchisors will run regional and national advertising, launch marketing campaigns and provide you with new products to offer your customers.