What is Franchisee Business in india. advantages of a franchise.

What is Franchisee Business. Make profit from franchisee business module.

Hey guys are you thinking about to start a new business then you must have some requirements such as place for business , finance for your business and business plan to run your business. In this case you have to face many competition for your new business.  And you need a many years to grow your business but franchisee business model made it easy. Franchise business is a brand that is given to franchisee person by franchisor. 

1. What is franchisee business.

Franchisee business is business system in which one set uped business that is popular brand in market that is selling their business goodwill , name and rights of the business to third party.

Here is two parties in franchisee business one is franchisee and other is franchisor. Franchisee is a person who is buying the brand name and rights of company. 

Franchisor is a person that sells business name and rights to franchisee.

We shall understand this module by example.

Ram is person lives in dholakpur and he has a business of hotel that popular named as "Hunger's Cafe". He is doing business from many years. Lakhan is a brother of Ram and he lives in fufurinagar. Lakhan has a capital and place for business but he is thinking if I started my new business then it will take time to grow in market. There is many competitor in the market. He met to Ram and said to ram his condition. Ram said , use my brand name and provide service to public like me. 

So here lakhan pay fees to ram for using their business name and logo. And his business got grown within a few months 

In this example , Ram is franchisor and lakhan is franchisee. Lakhan pay fees to ram for using the business goodwill. 

Now we shall talk about what is profit for both parties in this franchisee business module.

See, franchisor gets a fixed commission per month by franchisee. And in case of franchisee , entire profit is earned by franchisee after deducting the commission of franchisor.

We hope this information is helpful for you. If you have any doubt then ask in comment, we shall solve your question or doubt. Thanx for visiting.