FRANCHISE OWNER

Many franchisors have a high degree of control over the appearance and operation of a franchise. Essentially, as a franchise owner, you are paying for the use of the chain's name, which has value because of its immediate recognition. You are also agreeing to do business the franchisor's way because it has been proven to be successful in the past. Most franchisors have the final say on the operations of your franchise, from uniforms to the location of the franchise itself. For example, if you decide to open your own Captain Burgerman, the head office may turn down your site request if it is too close to another restaurant in the chain, which would potentially cost your franchise business.

Why are franchisors so concerned about these issues? Because they receive a part of your income. Some of the money your store takes in will go back to the franchisor in the form of a royalty that is determined by how much money your business takes in per month or per year. By agreeing to run a franchise, you sign a contract saying so, and if you break the terms of that contract, you can potentially lose your business and your franchise fee.

Once you obtain the right to open a franchise, be prepared to work hard. The chance for success is high, but it involves a serious amount of time spent making sure business goes well. To save money, some franchise owners pull double duty and act as the managers of their restaurants. The work can be hard, but since you'll be operating under the name of a well-known chain, you'll be given plenty of support. Both you and the franchisor will be concerned about the income of your franchise. If it succeeds, it will be rewarding for everyone.