Coronavirus Relief Package
Q: How Does Franchising Work?
A: Franchising is an arrangement where a name brand company grants a local entrepreneur the right to use its business name, trademarks, and processes to produce and market a good or service. The business owner usually pays a one-time fee and a percentage of sales revenue as royalty. Typically, the brand provides national advertising and support, while the independent owner is responsible for day-to-day operations of the business, including hiring and scheduling employees.
A letter from U.S. Travel Association, American Hotel & Lodging Association, International Franchise Association, and Asian American Hotel Owners Association to Secretary Mnuchin and Administrator Carranza Requesting Clarifications of the CARES Act for the travel, lodging, and franchising industries.