First of all the franchisor as to prepare a introductory package fort he franchisee. This package contains information about the firm and forms to be filled out as well as financial information. There are also three guidebooks that franchisor is obligated to give to the franchisee.  First one is the book about the main company, second one is the book about the obligations of a franchisee, and third one about how to run the business also known as the ‘know-how’ book. Franchisee has to be very careful when choosing a Franchisor analyzing every aspect from finances to business conduct. At the same time the Franchisor has to do the same for the Franchisee. After getting acquainted the parties start negotiations. First they choose the business location. After that they decide on the capital, payment options and return on investment. According to the outcome the franchisee makes a decision and they sign the contract. The contract must be in detail covering all the aspects of the business. Upon singing the contract the franchisee starts the payments. The payments are made according to the articles of the contract and can be different for every franchisee. The franchisee then starts setting up the store. The decoration , training, and personnel is chosen with the help of the franchisor. Some franchisors will do everything fort he franchisee. After all the preparations the franchisee is ready to open for business. During this time a representative from the franchisor firm will be helping the new franchisee.