A franchise is a type of license that grants a franchisee access to a franchisor's proprietary business knowledge, processes, and trademarks, thus allowing the franchisee to sell a product or service under the franchisor's business name. In exchange for acquiring a franchise, the franchisee usually pays the franchisor an initial start-up fee and annual licensing fees.
When a business wants to increase its market share or geographical reach at a low cost, it may franchise its product and brand name. A franchise is a joint venture between a franchisor and a franchisee. The franchisor is the original business. It sells the right to use its name and idea. The franchisee buys this right to sell the franchisor's goods or services under an existing business model and trademark.
Joining us for our discussion on Franchising and Entrepreneurship is Kevin Hicks who is on the phone from his New York, New York office Kevin Hicks Kevin Hicks is a Partner with Blackman and Associates; a franchise consulting firm, which provides franchise advisory and acquisition services for individuals and companies. Blackman and Associates identifies the most viable and lucrative franchise opportunities for its clients, with both start-up and existing businesses. The firm provides market research; marketing strategies; business plan development; franchise management recruitment; due diligence assistance, deal searches; acquisition of both debt and equity financing; and strategic franchise growth planning. His organization operates under the belief that the next human rights frontier for people of color is economic empowerment. Welcome Back To Mastering Your Money, Kevin Hicks .