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

Bankrupt Quiznos Settles With Franchisees in Cost Dispute
Legal Center

Bankrupt Quiznos Settles With Franchisees in Cost Dispute

The bankrupt sandwich chain has reached a settlement with 12 defunct franchisees who were suing the company for about $40 million.
Kate Taylor
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Franchise Players: A 'College Hunk' Franchisee on Dealing With Red Tape
Franchise Players

Franchise Players: A 'College Hunk' Franchisee on Dealing With Red Tape

Operating 'College Hunks' franchises across four states, Stephen Bienko has dealt with plenty of state regulations and red tape.
Kate Taylor
Why Dairy Queen Is Finally Opening Up in Manhattan
Food Businesses

Why Dairy Queen Is Finally Opening Up in Manhattan

Dairy Queen is taking on the challenge of opening a franchise in the heart of New York City, with plans to open 35 to 50 more restaurants in the area.
Kate Taylor
Franchise Players: Married Burger Franchisees on Playing to Each Other's Strengths
Franchise Players

Franchise Players: Married Burger Franchisees on Playing to Each Other's Strengths

After 30 years of experience outside the franchising industry, this couple now works together at Hwy 55 Burgers, Shakes & Fries.
Kate Taylor
Punching Above Its Weight, the Boutique Fitness Franchise Trend Is Taking Off
Fitness Businesses

Punching Above Its Weight, the Boutique Fitness Franchise Trend Is Taking Off

The landscape may still be dominated by big-box gyms, but smaller more niche services are quickly gaining ground.
Tracy Stapp Herold
Umami Burger Founder's Latest Dish? Chocolate Fried Chicken
Restaurants

Umami Burger Founder's Latest Dish? Chocolate Fried Chicken

The founder of the LA burger joint-turned-national franchise is hoping to make similar magic with a new restaurant called ChocoChicken.
Geoff Weiss
Franchise Players: How I Went From Fine Dining to Fast Casual
Franchise Players

Franchise Players: How I Went From Fine Dining to Fast Casual

How this McAlister's franchisee went from owning an Italian fine dining restaurant to running 23 delis.
Kate Taylor
Franchise Players: Don't Expect to Make Money Right Away
Franchise Players

Franchise Players: Don't Expect to Make Money Right Away

Franchising isn't for those trying to make a quick buck, says this sports league franchisee.
Kate Taylor
Why Athletes and Veterans Make Incredible Franchisees
Franchise

Why Athletes and Veterans Make Incredible Franchisees

Hardworking, creative and team-oriented, military personnel and athletes have entrepreneurial skills that are an asset to any franchise.
Joe Prusha
Looking to Steal Taco Bell's Thunder, McDonald's Offers Free Coffee
McDonalds

Looking to Steal Taco Bell's Thunder, McDonald's Offers Free Coffee

The day after Taco Bell began its breakfast sales, McDonald's announced plans to offer free McCafe coffee for two weeks during breakfast hours.
Kate Taylor
Franchise Players: An Ex-Convict Starts Life Anew as a Franchisee
Franchise Players

Franchise Players: An Ex-Convict Starts Life Anew as a Franchisee

After serving six years for bank fraud, John Rusnak seems to have found redemption in franchising.
Kate Taylor
Franchise Players: A Fitness Franchisee Who Persevered Through Cancer
Franchise Players

Franchise Players: A Fitness Franchisee Who Persevered Through Cancer

Instead of giving up when he was diagnosed with cancer, Woody Bedell doubled down and opened his first Exercise Coach studio.
Kate Taylor
Panera Gets Serious About Tech, Says Its Future Depends On It
Food Businesses

Panera Gets Serious About Tech, Says Its Future Depends On It

The soup and sandwich chain is introducing tech upgrades that include mobile ordering and self-checkout kiosks.
Kate Taylor
Franchise Players: Before You Buy a Franchise, Talk to Former Employees
Franchise Players

Franchise Players: Before You Buy a Franchise, Talk to Former Employees

Bruno Lima didn't just talk to other Anago franchisees before franchising – he reached out to ex-employees.
Kate Taylor