Business franchises are fairly common in the business world today. In the general sense of the word, franchises are an agreement concluded with the owner of a brand (technological process, intellectual property, trademark, business model, etc.) for the right to use the specified brand under certain conditions. In fact, the franchisee (the party acquiring the right to such use) becomes a partner of the franchisor (brand owner) in a ready-made, promoted business project. Not free, of course. The terms of franchises may include not only technologies and the right to release products or provide services under a certain brand name but also the provision of advertising materials, business contacts, business schemes, personnel training, etc.

Entrepreneurial franchises project provides the franchisee with many benefits. Firstly, a person gets an almost ready-made business, sufficiently advertised, with loyal customers and business partners. Secondly, as a rule, all business processes have already been worked out, clearly described, and repeatedly tested in practice. Thirdly, the franchisee is usually not faced with the task of researching the market and consumer preferences, developing new products and brands. Its task is to provide business processes of production and ready-made and well-known products trade (or services), which, as a rule, means practically guaranteed income and normal profitability immediately after starting work. Of course, franchising also has its risks and possible negative consequences in terms of business activity. First of all, we are talking about the need to pay royalties (mandatory fees for using a trademark).

Most often it is calculated as a percentage of the turnover, but it can also be fixed. Additional services (advertising and information support, business support and organizational support, assistance in the selection and training of employees, etc.) are also not provided free of charge. The cost of the franchises directly depends on the price of the trademark provided in this kind of lease and can be calculated in both thousands and millions of dollars (for example, like McDonald's). It should be noted that large and well-known companies, whose franchises are expensive, often provide their franchisees with the opportunity to pay these amounts in installments, which reduces the burden on the business in the first months and even years of its existence.