How does a business franchise work?

A business franchise is an agreement between the franchise and the business owner where the owner agrees to pay a certain amount of money for use of the business' name and usually requires the business owner to pay the business entity a certain percentage of sales. In return, the the business provides low cost advertising for the franchise and a string of suppliers which in turn makes it easier for the franchisee to run the business. This is usually the most common form of entry for an entrepreneur. The biggest advantage of going this route is the brand recognition such as the golden arches of McDonalds.