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

At Restaurants, Calorie Counts Shape Most Customers' Orders
Personal Health

At Restaurants, Calorie Counts Shape Most Customers' Orders

Calorie counts do matter – 57 percent of customers use menus' nutritional information when deciding what to order, according to a new CDC survey.
Kate Taylor
How These Brothers Took Over a Taco Franchise
Franchise Players

How These Brothers Took Over a Taco Franchise

When these four brothers took a liking to Chronic Tacos, they decided to go all in.
Kate Taylor
Franchise Players: A Temp Works Her Way to the Top
Franchise Players

Franchise Players: A Temp Works Her Way to the Top

When Renee Rodriquez started as a temp at Express Employment Professionals, she never expected she'd someday become a franchisee herself.
Kate Taylor
Franchisees in Puerto Rico Claim McDonald's Broke FTC Rule
Legal Center

Franchisees in Puerto Rico Claim McDonald's Broke FTC Rule

In letting McDonald's biggest franchisee open up shops in Puerto Rico, local franchisees say the fast-food giant violated FTC rules.
Kate Taylor
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Franchise Players: How I Bought an Embroidery Franchise at 21
Franchise Players

Franchise Players: How I Bought an Embroidery Franchise at 21

Maria Emma's key to running a successful business at age 21: having the support of a franchise team.
Kate Taylor
Franchisee Pays Employees $144K Out of Pocket After Fire Destroys Restaurant
Franchise

Franchisee Pays Employees $144K Out of Pocket After Fire Destroys Restaurant

This Culver's franchisee says that continuing to pay employees as his restaurant was being rebuilt was not only the right thing to do, but a smart business move.
Kate Taylor
Franchise Players: My 5 Tips for Potential Franchisees
Franchise Players

Franchise Players: My 5 Tips for Potential Franchisees

From travel agent to CruiseOne franchisee, Michael Ramdial is dedicated to making vacation dreams a reality.
Kate Taylor
Franchise Players: A Former Banker Escapes Monotony Through Franchising
Franchise Players

Franchise Players: A Former Banker Escapes Monotony Through Franchising

While Steve Betts felt trapped working at a bank, franchising allowed him to find freedom in entrepreneurship.
Kate Taylor
Papa John's Founder on What Makes an Outstanding Franchisee
National Small Business Week

Papa John's Founder on What Makes an Outstanding Franchisee

John Schnatter started what is now a billion-dollar pizza franchise in a broom closet. Now, there are 4,500 Papa John's restaurants located across the globe.
Catherine Clifford
Franchise Players: From Selling Clothes Out of a Basement to Opening a Brick-and-Mortar Store
Franchise Players

Franchise Players: From Selling Clothes Out of a Basement to Opening a Brick-and-Mortar Store

In just a few months, these boutique franchisees' business was far too big for a basement.
Kate Taylor
Franchise Players: Don't Rush to Find the Right Franchise
Franchise Players

Franchise Players: Don't Rush to Find the Right Franchise

With the help of an entrepreneurial coach, this Maui Wowi franchisee learned that finding the right franchise was all about passion.
Kate Taylor
How to Spot the Ideal Franchise Opportunity for You
Franchise

How to Spot the Ideal Franchise Opportunity for You

No franchise is perfect, but some can come pretty close -- you just have to go in with your eyes open.
Joel Libava
Why Early Adopters Will Win the Franchise Game
New technology

Why Early Adopters Will Win the Franchise Game

A 'don't-rock-the-boat' strategy is no longer an acceptable option.
Franchise Players: I Grew My Business Through Co-Branding
Franchise Players

Franchise Players: I Grew My Business Through Co-Branding

Richard Helmey was grew his printing business by co-branding with FASTSIGNS. Here's how.
Kate Taylor