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

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
KFC's Drumstick Corsages Are the Latest Quirky, Millennial-Targeted Fast-Food Experiment
KFC

KFC's Drumstick Corsages Are the Latest Quirky, Millennial-Targeted Fast-Food Experiment

In the ongoing battle to prove which fast-food chain 'gets' millennials the most, KFC is now selling corsages for prom
Kate Taylor
Franchise Players: This Customer Bought a Franchise to Save It From Closing
Franchise Players

Franchise Players: This Customer Bought a Franchise to Save It From Closing

In a serious sign of customer loyalty, Akash Lal became the owner of his local go-to PostNet location to save it from shuttering its doors.
Kate Taylor
From Independent Business Owner to Franchisee
Franchisees

From Independent Business Owner to Franchisee

Don Robinson has been an independent restaurant owner -- twice -- but has come to the realization that being a franchisee plays to his strengths.
Franchise Players: International Hooters Franchisee on Taking the Business Worldwide
Franchise Players

Franchise Players: International Hooters Franchisee on Taking the Business Worldwide

With Hooters locations from South Africa to Portland, Ore., Michael Pruitt knows how to make a brand go global.
Kate Taylor