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.

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News and Articles About Franchise

Franchise Players: After Tragedy, a Son Takes Over as Franchisee
Franchise Players

Franchise Players: After Tragedy, a Son Takes Over as Franchisee

When his father died, it was Mark Calis's turn to step up as co-owner of a Minuteman Press with his mother.
Kate Taylor
10 Habits of Highly Successful Future Franchisees
Success Strategies

10 Habits of Highly Successful Future Franchisees

Just because you own a franchise, a business with proven systems and tested procedures, doesn't mean you can kick back and chillax.
Joel Libava
With Investors Hungry for Fast-Casual Chicken, El Pollo Loco Makes Strong Public Debut
IPO

With Investors Hungry for Fast-Casual Chicken, El Pollo Loco Makes Strong Public Debut

Shares of the Mexican-style chicken franchise were off to a strong start on their first day of trading.
Kate Taylor
Franchise Players: We Were Planet Fitness's First Franchisees. Now, We Own 22 Locations.
Franchise Players

Franchise Players: We Were Planet Fitness's First Franchisees. Now, We Own 22 Locations.

Over the last decade, Eric Dore and Shane McGuiness have seen Planet fitness grow from a regional fitness chain to an 800-plus location franchise.
Kate Taylor
Dunkin' Sales Disappoint as Same-Store Sales Drag
Dunkin' Donuts

Dunkin' Sales Disappoint as Same-Store Sales Drag

The company missed expectations due to weak sales at Dunkin' Donuts in the U.S. and Baskin-Robbins' struggles abroad.
Kate Taylor
Franchisees Take 7-Eleven to Court for Alleged Racial Discrimination
Legal Center

Franchisees Take 7-Eleven to Court for Alleged Racial Discrimination

A group of franchisees are accusing the convenience chain of trying to make a profit by systematically forcing South Asian immigrant franchisees out.
Kate Taylor
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Franchise Players: Hiring the Right People Is the Hardest Part
Franchise Players

Franchise Players: Hiring the Right People Is the Hardest Part

After 30 years in the corporate world, Skip Wyatt decided it was time to create jobs instead of finding ways to eliminate them.
Kate Taylor
The Restaurants Business Travelers Love the Most (Infographic)
Business Travel

The Restaurants Business Travelers Love the Most (Infographic)

Chick-fil-A and Chipotle are two of the hottest brands in food right now. Here's how they're cashing in on travelers' tastes.
Kate Taylor
Chinese Police Detain Five in Expired Meat Investigation
Franchise

Chinese Police Detain Five in Expired Meat Investigation

Officials believe the American-owned food supplier in China purposefully sold expired chicken to chains including McDonald's, KFC and Starbucks.
Kate Taylor
Franchise Players: A Military Veteran and Leukemia Survivor Embraces Life as a Franchisee
Franchise Players

Franchise Players: A Military Veteran and Leukemia Survivor Embraces Life as a Franchisee

After 10 years in the Marines and a bout with leukemia, this franchisee decided she wanted to be an entrepreneur.
Kate Taylor
From Pizza in a Cone to Poutine: The Marketing Power of Far-Out Food Franchises
Franchise

From Pizza in a Cone to Poutine: The Marketing Power of Far-Out Food Franchises

These franchise founders are turning oddball menu offerings into serious business.
Geoff Weiss
Franchise Players: Learning to Manage Entry-Level Employees
Franchise Players

Franchise Players: Learning to Manage Entry-Level Employees

Devang and Chaitali Kothari didn't realize that the biggest challenge in franchising would be learning to be good managers.
Kate Taylor
Franchise Players: What This Franchisee Power Couple Has Learned in Two Decades of Entrepreneurship
Franchise Players

Franchise Players: What This Franchisee Power Couple Has Learned in Two Decades of Entrepreneurship

After taking a leap of faith 22 years ago, Susan and Dan Manwaring have opened 14 Batteries Plus Bulbs stores.
Kate Taylor
New McDonald's Lawsuit Could Redefine Franchising as We Know It
Legal Center

New McDonald's Lawsuit Could Redefine Franchising as We Know It

A worker group is filing charges against franchisees and McDonald's as a joint employer, setting a precedent that could have broad ripple effects.
Kate Taylor
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