Franchise

Franchise

Franchising is a business opportunity that's somewhere between buying an existing business and launching a startup in terms of creativity, independence and risk. A franchisee buys a license from a franchisor to be a dealer of that business model. The owner of the franchise sells a product or service through its franchisees.

In exchange for an initial set-up fee and a monthly payment, the franchisor provides the franchisee a business model, marketing supplies, staff-training assistance, managerial consulting and a pre-existing supply chain. Also, the franchisee benefits from the franchisor's economies of scale, receiving access to prices that a business owner may not otherwise get running a single shop.

There is, in theory, less risk to buying a franchise business than starting a business from scratch because the business model has been tested. Also, as a franchise unit owner, you have a built-in advisory board in the management staff of the umbrella franchise organization. On the downside, you have less creative control over your business as a franchisee than as an independent business owner.

For more information about the top franchises, check out Entrepreneur's Annual Franchise 500 ranking.
 

Today's Most Read

News and Articles About Franchise

What to Expect as a Pizza Chain's First Franchisee in a New State
Franchise Players

What to Expect as a Pizza Chain's First Franchisee in a New State

When Slava Kopilevich had the chance to bring the Sarpino's Pizzeria brand to Florida, he decided to relocate to become the first franchisee in the state.
Kate Taylor
Dog Lovers Bring a New Pet-Care Franchise to Georgia
Franchise Players

Dog Lovers Bring a New Pet-Care Franchise to Georgia

When Nancy and Dave Dalton began looking into opening their own business, they let their love for animals serve as their guide.
Kate Taylor
Why This Franchisee Relocated to Open a Sandwich Shop
Franchise Players

Why This Franchisee Relocated to Open a Sandwich Shop

After 10 years of owning a valet company, Rich Wilkinson decided to relocate to open a Which Wich location in South Carolina.
Kate Taylor
Why These Two Best Friends Opened a Franchise Together at Age 28
Franchise Players

Why These Two Best Friends Opened a Franchise Together at Age 28

Best friends since high school, Randy Vlasic and Alex Veinot always dreamed of opening a business together. Now, they're living the dream.
Kate Taylor
Why the Former President of CiCi's Pizza Became a Bakery Franchisee
Franchise Players

Why the Former President of CiCi's Pizza Became a Bakery Franchisee

As president of CiCi's Pizza, Craig Moore learned plenty about franchising. That's why he bought a Nothing Bundt Cakes franchise.
Kate Taylor
Bringing Something New to Auto Repair Franchising as a Woman
Franchise Players

Bringing Something New to Auto Repair Franchising as a Woman

Tired of being "treated like a moron" when she went to the auto repair shop, Sherry Rector decided to open an Honest-1 Auto Care franchise of her own.
Kate Taylor
Thanks to Auto Industry Rebound, Franchising Booms in November
Jobs

Thanks to Auto Industry Rebound, Franchising Booms in November

After a slow October, the franchising industry added nearly 25,000 jobs last month.
Kate Taylor
Bringing Innovation to the Dry Cleaning Industry
Franchise Players

Bringing Innovation to the Dry Cleaning Industry

For Hector Di Bonaventura, franchising provided a way to bring something new to an industry lacking in innovation.
Kate Taylor
Starting From Scratch After 15 Years in the Workforce
Franchise Players

Starting From Scratch After 15 Years in the Workforce

Eric Silver had worked at a small business, a medium-sized business and a large corporation, but nothing felt right until he opened up his own franchise.
Kate Taylor
How to Make the Best Career Choice for You
Career Change

How to Make the Best Career Choice for You

Listen to yourself and explore all the possibilities. In the end, you'll know what makes sense.
Joel Libava
Helping Dementia Patients Through Franchising
Franchise Players

Helping Dementia Patients Through Franchising

As Right at Home franchisees, Mark and Dr. Nicole Ross serve their community with a new program that helps battle memory loss through music.
Kate Taylor
The 5 Elements of a Successful Franchise
Franchises

The 5 Elements of a Successful Franchise

There is no one perfect franchise, but there are many that have elements that lay the groundwork for success.
Joel Libava
Turning a Mom-and-Pop Business into a Franchise That Serves 14 States
Franchise Players

Turning a Mom-and-Pop Business into a Franchise That Serves 14 States

In 9 years, Vincent Lee took a small janitorial business and turned it into a franchise that provides services for huge companies including Nike and FedEx.
Kate Taylor
You're Either an Entrepreneur or You're Not. There Is No In-Between.
Franchise Players

You're Either an Entrepreneur or You're Not. There Is No In-Between.

Shahid Hashmi is an entrepreneur through and through, as the franchisee of 40 Popeye's, two Burger Kings and one ZIPS Dry Cleaning.
Kate Taylor