QYAO FRANCHISE SECTION

7th Level - FRANCHISE

• WHAT IS A FRANCHISE?
  
  This is a legal and commercial relationship between the owner of a trademark, service mark, trade name, or advertising symbol, and an individual/group wishing to use that identification in a business.
  
  Each franchise business has been authorized by a parent company, or franchisor, to sell their goods and/or services either in a retail space or a designated geographical area. The franchise governs the method of conducting business between the two parties. Generally, a franchisee sells goods or services supplied by the franchisor or that meet the franchisor's quality standards. This relationship is regulated by FTC laws.

  The popularity of the franchise business model has to do with its proven track record of success and ease in becoming a business owner. Independent, non-franchise businesses have a much higher likelihood of failure within their first year than franchises. One of the most compelling reasons is that, in a franchise operation, the franchisor provides business expertise (marketing and advertising plans, management guidance, financing assistance, site location, administrative support and training) that otherwise would not be available to businesses starting from scratch. Franchisees bring to the relationship entrepreneurial spirit and drive, which may not be enough to keep a business afloat if the franchisee lacks significant business acumen.