As you may be aware, a franchise is started by a business owner that can prove a track record for success within a specific niche.  Typically, the owner will have created a trademark, special logos, and many other materials that help consumers know which products and services are offered by the business.  Aside from running the actual business, a low cost franchise owner will lease certain business materials  to other business owners.  This may include permission to use patented items, as well as logos and other branding resources.  In many cases, the more popular the business is, the more expensive it will be to take part in the franchise (i.e. krispy kreme franchise).  On the other hand, newly emerging franchises can provide a tremendous amount of growth opportunity.