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

Franchise Players: Why I Chose a Franchise Instead of a 'Mom and Pop' Shop
Franchise Players

Franchise Players: Why I Chose a Franchise Instead of a 'Mom and Pop' Shop

Want to make it big? Look into owning a franchise instead of opening up your own business, says this property management franchisee.
Kate Taylor
Franchisees Seek Injunction to Halt Minimum-Wage Hike in Seattle
Minimum Wage

Franchisees Seek Injunction to Halt Minimum-Wage Hike in Seattle

The International Franchise Association filed for an injunction preventing Seattle from enacting the new minimum wage law in its present state.
Kate Taylor
Fatburger Debuts Its Version of the Double Down
Hamburgers

Fatburger Debuts Its Version of the Double Down

Taking a page from KFC, Fatburger doubles the meat, holds the buns with this new, high-protein offering.
Kate Taylor
Why These 3 Once Thriving Franchises Have Fallen on Hard Times
Franchise

Why These 3 Once Thriving Franchises Have Fallen on Hard Times

What went wrong, and can they survive?
McDonald's Tests a 60-Second Drive-Thru Guarantee
McDonalds

McDonald's Tests a 60-Second Drive-Thru Guarantee

In a bid to speed up service, McDonald's is promising customers in South Florida free food if they don't get their meals served up in under a minute.
Kate Taylor
Franchise Players: How a Travel-Loving Cosmetologist Became a Franchisee
Franchise Players

Franchise Players: How a Travel-Loving Cosmetologist Became a Franchisee

For Maria Tilton, a love for travel became a career when she invested in a Cruise Planners franchise.
Kate Taylor
P.F. Chang's Says Credit-Card Breach Affected 33 Restaurants
Security

P.F. Chang's Says Credit-Card Breach Affected 33 Restaurants

The Asian-themed restaurant chain revealed the breach affected 33 locations across 16 states.
Kate Taylor
Franchise Players: This Corporate Employee Put Her Money Where Her Mouth Was and Bought a Franchise
Franchise Players

Franchise Players: This Corporate Employee Put Her Money Where Her Mouth Was and Bought a Franchise

This Shula Burger executive always wanted to own her own business. So, she opened her own Shula Burger franchise while still serving as director of marketing for the chain.
Kate Taylor
Franchise Players: Why We Chose a Childcare Franchise
Franchise Players

Franchise Players: Why We Chose a Childcare Franchise

Steve and Stefani Kulawik talk about the challenges and triumphs of opening a family business that reflects their values.
Kate Taylor
Franchise Players: Never Stop Marketing
Franchise Players

Franchise Players: Never Stop Marketing

This franchising couple see every moment as a chance to advertise their franchise.
Kate Taylor
The 9 Highest Calorie Meals from Your Favorite Chain Restaurants
Franchise

The 9 Highest Calorie Meals from Your Favorite Chain Restaurants

Can you guess which chain took the cake for the most calorie-rich food offering? Hint: It has a 2,780 calorie French toast dish.
Kate Taylor
Franchise Players: Why We Turned Our Independent Business Into a Franchised Location
Franchise Players

Franchise Players: Why We Turned Our Independent Business Into a Franchised Location

These College Hunks Hauling Junk franchisors tried to open up a pilot location for a new franchise concept, before converting the location into a Two Maids & A Mop franchised unit.
Kate Taylor
Mrs. Fields and TCBY Are Rising From the Ashes, Hand in Hand
Franchise

Mrs. Fields and TCBY Are Rising From the Ashes, Hand in Hand

Through dual branding and an in-store ecommerce business, the two sweet sister brands are hoping to cash in on a new type of franchise.
Kate Taylor
Regulator Names McDonald's a 'Joint Employer'
Franchise

Regulator Names McDonald's a 'Joint Employer'

The National Labor Relations Board has deemed McDonald's a 'joint employer' – a decision that could redefine franchising as we know it.
Kate Taylor