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Olivia wants to start a fast-food restaurant. Instead of spending time and money to develop their own brand name and operating system, Olivia wants to open a business under the popular brand, ABC Fast Food Inc. Olivia has done their research. They think that most people already know about ABC Fast Food Inc. and enjoy their food products. ABC Fast Food Inc. provides Olivia with access to their brand name, operating system and support. In return, Olivia pays fees and royalties to ABC Fast Food Inc. In this example, Olivia is the franchisee. ABC Fast Food Inc. is the franchisor. Olivia's business is a franchise business. |
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