Franchise 101
Before you start your FitScore
Take 2 minutes to understand what franchising actually involves. Informed candidates score more accurately and feel more confident during the assessment.
What is a franchise?
A license to operate under an established brand - not employment, not fully independent.
A franchise is a licence to operate a business under an established brand's name, systems, and trademarks. You pay the franchisor an upfront fee (the franchise fee) and ongoing royalties in exchange for the right to use their brand and benefit from their support.
You (the franchisee) own and operate the location. The franchisor (the brand) provides training, marketing, supply chain access, and operational guidance. It's a partnership - not employment, and not a fully independent business.
Key characteristics:
• 10-year commitment in most cases
• Ongoing royalties: typically 4-8% of gross sales
• Marketing fund contributions: usually 1-3% of gross sales
• You follow the system - franchisors require compliance