Franchisors have an incentive to aid their franchisees because they receive a royalty fee based upon the sales or profitability level of the franchisee. Franchisors may provide help-not only in starting a new franchise, but also in the assessment of existing franchises to help promote operational improvement. On the flip side, the formulaic nature of franchises can create boundaries with regard to the ways a franchisee is allowed to run his or her business. The UFOC (
Uniform Franchise Offering Circular
), when reviewed in detail, will give you a thorough understanding of the franchisee/franchisor relationship.