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Why do franchise owners pay franchise royalties

on 11 Aug  Posted by Admin  Category: General  

by Bizymoms.com
http://www.bizymoms.com

A franchise owner is a person who gives his right of marketing and selling, to a third party (franchisee) under his trademark label. The franchisee will continue his business of marketing and selling after becoming a group member and will receive valuable training, support and technical assistance from the franchisor. The franchisee then pays a fee to the franchisor for his support and rights. The relationship between a franchiser and a franchisee could be described as: "A fee given by a Franchisee to a franchisor for the training, advertising & marketing, trademark & other facilities given".

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