India Database

The franchisee , or affiliate: the entrepreneur who, through a contract, joins the franchising system by committing to manage his own sales point according to specific clauses.
Franchisor and Franchisee regulate their relationship through the franchising contract , through which the economic agreement will also be established which is structured in two ways:

Entry fee : thefinancial consideration paid by the affiliate to vk data the franchisor for a series of services made available to start the business. This payment usually occurs upon signing the contract in order to ensure exclusivity of the area.
Royalty : the compensation proportional to the activity carried out by the franchisee and paid to the franchisor for the remuneration of rights deriving from intellectual property.
How Franchising Works: Advantages and Disadvantages

Creating a franchise has advantages and disadvantages not only for the franchisor, but also for the franchisee.
So let's look at the pros and cons of franchising together, analyzing them first on the franchisor and then on the franchisee.