Franchises are generally of two varieties.
This copy is based on the key elements of the original concept that are necessary to duplicate the success of the original business in any number of new locations. In theory, then, the purchaser of the franchise package owns their own business, but in practice the franchise contract removes any creative freedom from the operation of that business. Franchisers can often generate additional revenues by purchasing inventory and supplying stock to all the franchisees. A margin on the purchased stock or a service charge to the franchisees is quite common. Licensing the rights to manufacture products against a proprietary design or process patent is a common form of manufacturing franchise.