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

Franchise Players: Veteran and Mother of Five on Refusing to Settle
Franchise Players

Franchise Players: Veteran and Mother of Five on Refusing to Settle

After nine years in the military, Tai Jeffries refuses to settle for anything less than her male counterparts as a cleaning franchisee.
Kate Taylor
Meet the Real Estate Franchise Backed by Warren Buffett
Real estate

Meet the Real Estate Franchise Backed by Warren Buffett

One of the first enterprises Buffett is allowing to use the Berkshire Hathaway brand name is a real-estate brokerage.
Why It Pays Big to Be an Early Adopter in Franchising
Early Adopters

Why It Pays Big to Be an Early Adopter in Franchising

Getting in on the ground floor can lead to big things in a world where a relatively modest investment can turn into a profitable business.
How Social Franchising Is Bringing Jobs to the Developing World
Franchise

How Social Franchising Is Bringing Jobs to the Developing World

The aid community is taking the efficiency and standardization of the franchise model any applying it toward philanthropic endeavors.
8 Totally Weird Fast-Food Items That Everyone Is Talking About
Franchise

8 Totally Weird Fast-Food Items That Everyone Is Talking About

Fast-food chains have been trying to one-up each other with wacky offerings like the Waffle Taco and Chicken Corsage. Here are some of the weirdest items on the menu.
Kate Taylor
Franchise Players: Changing Careers to Provide Compassionate Caregiving
Franchise Players

Franchise Players: Changing Careers to Provide Compassionate Caregiving

After her father's death, Jane Daume was inspired to become a franchisee for an in-home care business for seniors.
Kate Taylor
Drive-In-Loving Franchisees, Take Note: Sonic  to Open 1,000 Restaurants in Next 10 Years
Sonic

Drive-In-Loving Franchisees, Take Note: Sonic to Open 1,000 Restaurants in Next 10 Years

The burger chain is eyeing an aggressive expansion plan over the next decade.
Kate Taylor
Franchise Players: I'm On My Own, But Not Alone
Franchise Players

Franchise Players: I'm On My Own, But Not Alone

After years of self-employment, this franchisee wanted to get into business for himself but not by himself.
Kate Taylor
KFC to Bring Back the Infamous Double Down
KFC

KFC to Bring Back the Infamous Double Down

Hot on the heels of the drumstick corsage, KFC is bringing back the super-hyped Double Down.
Kate Taylor
Restaurant Job Growth Rebounds in March (Infographic)
ADP Reports

Restaurant Job Growth Rebounds in March (Infographic)

After a grim February, restaurants once again ruled as the largest job creators in the franchise sector.
Kate Taylor
Our Top Homebased Franchises, No Office Space Required
Franchise

Our Top Homebased Franchises, No Office Space Required

Lower startup costs -- sixty of these homebased companies can be started for less than $50,000 -- are just part of the reason for these businesses' popularity.
Tracy Stapp Herold
Franchise Players: How We Knew Which Franchise Was Best for Us
Franchise Players

Franchise Players: How We Knew Which Franchise Was Best for Us

With a wealth of experience in corporate management, these Goddard School franchisees knew the right franchisor was key to success.
Kate Taylor
5 Ways Tech Is Forever Changing Fitness Franchises
Fitness Businesses

5 Ways Tech Is Forever Changing Fitness Franchises

With apps, wearable tech and the ability to micromanage franchisees across the country, tech is giving fitness chains new ways to flex their business muscle.
Kate Taylor
Introducing Entrepreneur's Top New Franchises to Watch
New franchises

Introducing Entrepreneur's Top New Franchises to Watch

These 57 newbies all started franchising in the past five years.
Tracy Stapp Herold