How does a franchise work?

Question

how do they charge you ? do they take a slice of your profits and are they worth while?

Answer 1

this will answer most of your queries.

http://money.howstuffworks.com/franchisi...

just click and read!

Answer 2

Most franchises will charge an initial set up fee and will take a percentage of your profits.

The advantage of franchising for someone who wants to manage their own business is that they are buying into an already established business model.  While over 40% of new businesses fail within the first 3 years the figure is less than 2% for new branches of a franchise.

Answer 3

It's kind of like a real estate agent working for a broker. They have to give 30% or so of their commission to the brokerage office and keep the rest.

It's the same way with a fast food franchise, like a pizza place. The owner of the franchise gets supplies and other support from the parent company (national advertising, for example) in exchange for a percentage of the profits going back to the parent company.

Answer 4

Contact me and I'll review all aspects of franchising with you.  I am a Franchise Consultant by trade, and my services are free to you.