A lets one person run a shop under the name and system of a larger business.
The attraction for the owner is a tested model and instant .
The attraction for the brand is growth funded by another person's savings.
Failure rates are lower than for independent shops, though the gap is smaller than the marketing suggests.
The contract is where the real money sits.
A is charged on rather than on profit.
A shop can therefore pay a substantial fee in a year when it loses money.
Supply terms often require buying from the brand at a set price.
That protects and removes the main way an owner can cut costs.
Disputes arise over , shop refurbishment and contract renewal.
A brand that opens a second outlet nearby can legally take half the first shop's trade.
Several countries now require a disclosure document before any money changes hands.
It must list the failure rate, the full fee schedule and the outcome of existing .