In return the franchisee agrees to pay the franchisor a royalty on all goods sold or services provided by the franchisee.
A franchise business opportunity is a way of doing business where a franchisee purchases a license for a successful business and trademark, duplicating operations as determined and directed by the franchisor.
In return, the franchisor supports the business by providing guidelines on training, marketing plans and advertising campaigns where the franchise shares coop print and broadcast ads.
Ads must be run according to placement guidelines without deviations, unless submitted to the franchisor for approval.
Litigation can result as issues between the franchisor and franchisee over incompetence or a lack of good faith arise.