Franchise Model

A business arrangement where a franchisor licences its brand, systems, and operating model to franchisees who pay fees and royalties to operate independently under the established brand.

Franchising allows rapid geographic expansion without the capital cost of opening new locations. Franchisees bear the operational risk and investment, while the franchisor earns royalties from every unit sold.

A founder who has built a successful physical wellness studio develops a comprehensive operations manual and brand system, then franchises the concept. Within two years she has twelve locations generating royalty income without managing each site directly.