Guillermo Perales – What is a Franchise?

Guillermo Perales owns multiple franchises in several states. His company Sun Holdings, Inc. is one of the largest franchisees in the country. He began his career in business by opening a Golden Corral franchise. He grew his business by systematically collecting more franchises. Franchising is a popular way of doing business, and is common among large corporations.

A franchise involves a business selling the rights to their business logo, name, and model to various third party retail outlets. They outlets are owned by independent operators called franchisees. These operators can be single individuals or franchisee companies. Becoming a franchisee involves paying a fee for the rights to the business, required equipment, and any training required by that particular franchise. After the business is up and running, the franchisee pays the franchisor a regular royalty payment which is a percentage of the operation’s gross sales.

A franchise is required to replicate the original business model. This means that the franchisee will have very little control of the business model and methods. The retail space, training, logo, and employee uniform must also be an exact duplicate of the original business. A major key in franchising is that the franchisee is not buying the right to sell a product as their own, but is buying the right to use a successful business process.

There are several franchises across the United States in a wide variety of industries. Guillermo Perales operates over 600 franchises in four different states. His company, Sun Holdings, Inc. is a franchisee and provides several cities with thousands of local jobs.