how does the franchisor make money 
typically a franchise agreement includes three categories of payment to the franchisor first the franchisee must purchase the controlled rights or trademark from the franchisor in the form of an upfront fee second the franchisor often receives payment for providing training equipment or business advisory services finally the franchisor receives ongoing royalties or a percentage of the operation s sales the bottom linea franchise can be a great way for an individual to enter the world of entrepreneurship as the majority of the groundwork has already been laid and you are leveraging off an established successful and well known business and brand name there are also many businesses with franchises to choose from for a fee and start up costs you can be on your way to being your own boss and entering a possibly lucrative career though it must be noted that success is not guaranteed and franchises require a lot of work to be profitable 