... an initial fee to acquire this right, and thereafter pay a percentage of their gross sales to the franchisor throughout the term of their franchise contract. In return for these payments, franchisees gain priveleges, including the right to sell a proven and recognized product or service, to use the franchisor's business practices, and to receive initial training and ongoing support. Additonal responsibilities can and usually do include: 1. Requirements to meet a variety of quality controls for products and services sold. 2. Restrictions on what they can sell or how they can operate using the company's name. 3. Specifications for their business location and site appearance. 4. Prohibitions on the operation of any similar businesses during or after the term of the franchise agreement. Franchisees usually have an advantage over their nonfranchisee competitors, since they have the rights to use the franchisor's: 1. Brand names, trademarks, copyrights, trade secrets, and ...

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