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Franchising Fundamentals – Basic principles to know

MSA Worldwide

Franchisees almost always own the equity in their businesses, and they may profit from sale of the equity when they choose to terminate their franchise relationship. The franchise fee gives the franchisee access to the franchisor’s intellectual property, training, and support.

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What do franchise brokers do?

MSA Worldwide

But keep in mind that brokers are paid a commission – and earn income – only when you buy a franchise from one of their clients. In some situations franchise brokers may continue to earn a percentage of your payments to the franchisor if you invest in additional franchises later.

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8 Warning Signs You Shouldn't Buy a Franchise

AllBusiness.com

Just like any other aspect of business, “consumer beware” holds true in the search for a valid and promising franchise opportunity. Sad to say, there are companies peddling franchise opportunities with no goals beyond collecting upfront franchise fees and moving on.