Franchise

July 23, 2014  |     |     |   0 Comment

A franchise is a unique form of business organization in which a franchiser provides to a franchisee a proven market-tested business package or process to sell a product or service. One of the most popular franchises is McDonald’s.

The franchisee operates under the franchiser’s trade name and markets and sells the franchiser’s product or service in accordance with the franchise agreement.

Franchisees generally pay a deposit to the franchisor to become franchisees. They later pay an on-going royalty fee to the franchiser as well.

Author: 

Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.

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