Question:
I am very interested in learning more about the franchise business model. I currently have a cleaning services franchise with Coverall but I would like to expand my knowledge in this world. I think franchising provides benefits for both the seller and the buyer. For franchisors, the main benefit is the ability to use other people's money to expand the brand more quickly than they could on their own or through investors or lenders. The initial franchise fee and ongoing royalties they collect allow franchisors to build their brand without sacrificing control to third parties or the pressure of paying lenders. Fees and royalties are used to finance operations at corporate headquarters, train and support franchisees, market and advertise the brand, improve the quality of goods or services, and build the brand in the market. So this is a good business model.