Have you ever wondered how a family or member of your community
can own a piece of a national — or even an international
— brand? The answer is franchising.
A franchise is a business formation that involves a localized
group, the franchisee, conducting a commercial operation as an
agent for a centralized company, the franchisor.
The franchisor provides business knowledge, trademarks,
processes and the business name to the franchisee. In return, the
franchisee complies with certain conditions and pays certain
franchise fees. These fees likely include significant start-up
costs and royalties, which typically consist of a portion of
revenue.
There are numerous advantages associated with this type of
business formation. Franchisees who want to start a new business
gain access to a recognized brand and established trademarks, while
franchisors benefit from a low-cost way of expanding. Franchising
is prevalent in Saskatchewan, spanning a wide range of industries
such