Franchisors typically experience a greater return on investment than if the firm were run entirely as a company-owned chain.

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Franchisors benefit from the franchise model by receiving upfront franchise fees, ongoing royalties, and potentially other revenue streams without the capital expenditures and operational risks associated with opening and operating new locations themselves, often leading to a greater return on investment compared to running an entirely company-owned chain.

Franchisors Typically Experience a Greater Return on Investment Than If