What does a franchisor receive in a franchising agreement?

In a Franchising agreement, a franchisor receives several benefits, including initial franchise fees, ongoing royalty payments based on a percentage of the franchisee's sales, and the potential for brand expansion through the franchisee's investment. Additionally, franchisors gain access to a broader market and increased brand visibility without incurring the full costs associated with opening new locations themselves. They also benefit from the franchisee's local knowledge and operational efforts to uphold the brand's standards.