2007-12-20 14:56:30 · 2 answers · asked by Anonymous in Business & Finance ➔ Investing
They have a product or service along with name recognition that other entrepenuers are willing to pay for so they can get into the business without reinventing the wheel or butting up against the established company (the franchisor).
The franchisor wants to take in even a small part of a much larger pie that they could never manage themselves.
2007-12-20 19:41:17 · answer #1 · answered by witz1960 5 · 0⤊ 0⤋
To make money.
With a franchise the company gets a fee for training and advertising and the use of it's name and system. The franchise operator puts up the capital for the store.
Without a franchise, the company could only open as many stores as it could afford with it's own capital. It would also hold all the risk.
2007-12-20 16:05:34 · answer #2 · answered by Ted 7 · 0⤊ 0⤋