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.
 

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News and Articles About Franchise

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
The Weirdest Fast-Food Mashups in America
Fast Food

The Weirdest Fast-Food Mashups in America

X plus Y equals fast-food mega sales? From Doritos Locos Tacos to the Pizza Cake, bizarre food concoctions are appearing on menus across the nation.
Kate Taylor
Survey: McDonald's Has the Worst Burger in America
Fast Food

Survey: McDonald's Has the Worst Burger in America

In the battle of the chain restaurants, Consumer Reports found that customers were sick of many of fast food mega-chains' specialties.
Kate Taylor
Franchise Players: Why You Need to Find a Mentor
Franchise Players

Franchise Players: Why You Need to Find a Mentor

Franchising provided Jasen Lawrence with mentors with direct experience and expertise in his business.
Kate Taylor
Winning is Simpler When You Don't Complicate Things
Growth Strategies

Winning is Simpler When You Don't Complicate Things

If you're not getting the results you want and feel like your business is in a slump, you've probably just gotten away from your fundamentals.
John Brubaker
U.S.A.-Belgium World Cup Game Sparks a Waffle War
World Cup

U.S.A.-Belgium World Cup Game Sparks a Waffle War

Restaurant chains Waffle House and Bojangles are encouraging U.S. fans to boycott Belgian waffles to support the USA World Cup team.
Kate Taylor