We have had a few questions about this topic.  This is a topic that if the franchisor pays special attention to, that he or she can use as a basis for higher royalties and possibly lease payments. The actual question involved ownership of property where the franchisor could not decide between simply expanding through company owned units or using the properties to franchise through.  It has been our experience that if the owner is ready to franchise, then leasing the property to franchisees is a great way to expand the business and generate more income for the franchisor. Basically, the franchisor has the ability to buy the real estate and then lease the land to the franchisee as part of the franchise agreement.  Therefore, by leasing the property, the franchisor has the ability to general income from lease payments as well as charge royalties based on the use of the property.