FAQs About Franchising

Many businesses are turning to the pure-play e-commerce model to grow and reach new customers. A pure-play business operates solely online without the need for physical stores, relying on digital channels to sell products or services.

The pure-play franchisor model places responsibility for e-commerce licensing, setup, operations (including fulfillment), marketing and customer support squarely on the franchisor. 

The pure-play franchisee model transfers the task of handling e-commerce operations to 
the franchisee. 

Begin by defining your quantitative goals.

Franchises typically approach e-commerce operations in one of four ways: 

The shared franchise e-commerce model is a variation of the pure-play franchisor model that considers the growing awareness and will of franchisees to be part of the internet enterprise while acknowledging the role that

The distributed franchise e-commerce model strives to position franchisees as the primary beneficiaries of e-commerce success while maintaining a consistent service experience with a franchisor-controlled back-end.

A strategic alliance is an arrangement between two franchisors to form a mutually beneficial business relationship while still retaining their independence. While similar, it is less binding and more flexible than a joint venture agreement, which would create an entirely new business between the two entities.  

Franchise royalty fees are recurring fees paid by the franchisee to the franchisor in order to continue using the business name, branding, and more.

The International Franchise Association maintains a franchise supplier directory that includes a legal category to help franchisees and franchisors identify attorneys with experience in franchising.