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Franchising is a business model in which many different owners share a single brand name. A parent company allows entrepreneurs to use the company's strategies and trademarks in exchange the franchisee pays an initial fee and royalties based on revenues. The parent company also provides the franchisee with support including advertising and training of staffs and franchisee as part of the franchising agreement. The parent company authorizes the franchisee's use of the company's trademarks as part of the franchising agreement. The franchising business model is used in 70 different industries, and according to the International Franchising Association the sector earns more than $1.5 trillion in revenues each year.

How Franchising Works

The franchising business model consists of two operating partners: the franchisor, or parent company, and the franchisee, the proprietor that operates one or multiple store locations. Franchising agreements usually require the franchisee to pay an initial fee plus royalties equal to a certain percentage of the store's monthly or yearly sales. The franchisee covers the costs of actually starting and operating the store, including legal fees, occupancy or construction costs, inventory costs, and labour. Franchise agreements usually have a term of between 5 years, depending on the company.

Advantages of the Franchising Model

December 28 2012
Opened its new office at Malaysia for international operations.

December 23, 2011
Dr.Navas Usman was awarded for the Excellence in Medical Field By Srichitra Tirunal Smaraka Foundation.


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