In developed countries businesses operated as franchises– this is a small businesses operated under single name. These small businesses were referred as franchisees. The franchiser is the main business that registered all its small business under a particular name of his business & allow them to use product and system for a fee & usually a percentage of their revenue.
The franchiser started off with original business idea that has ended up being successful, their business name become well known throughout countries. In various centers of the countries, the franchisees ( smaller businesses) operated by using franchiser’s facilities. The main business( Franchiser) taking responsibility for advertising.
The advantages for people who become franchisee (small businesses) sell products that proven to be successful and never think of original idea. They get advises from (franchiser main business) & buy all material from them.
However, their disadvantages are to sign agreement- which is called franchise agreement. It allows franchisees ( small businesses) to pay fee and percentage revenue to the main business ( franchiser). The Franchisee run businesses according to what the main business (franchiser) tell them to.
There are several advantages of franchiser. They do not find money to extent their business, franchisee (small businesses pays off). They get steady inflow of money & if more they register small businesses ( franchisee) in various location, their names become popular.
The name of Franchiser ( main business) is very important. They guide it well, if other business tries to use their name or similar name, they take them to court. The franchisers are very cleaver in marketing & a very successful. Examples, of franchisee business are big rooter.