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.
 

Today's Most Read

News and Articles About Franchise

Turning a Mom-and-Pop Business into a Franchise That Serves 14 States
Franchise Players

Turning a Mom-and-Pop Business into a Franchise That Serves 14 States

In 9 years, Vincent Lee took a small janitorial business and turned it into a franchise that provides services for huge companies including Nike and FedEx.
Kate Taylor
You're Either an Entrepreneur or You're Not. There Is No In-Between.
Franchise Players

You're Either an Entrepreneur or You're Not. There Is No In-Between.

Shahid Hashmi is an entrepreneur through and through, as the franchisee of 40 Popeye's, two Burger Kings and one ZIPS Dry Cleaning.
Kate Taylor
How These Subway Owners Decided to Open a Teriyaki Madness Franchise
Franchise Players

How These Subway Owners Decided to Open a Teriyaki Madness Franchise

This husband and wife duo already own 16 Subway franchises. Now, they're expanding into the Asian grill market.
Kate Taylor
To Find the Right Franchise, Test Drive More Than One
Franchise Opportunities

To Find the Right Franchise, Test Drive More Than One

Selecting a franchise is an enormous decision. Take a look at several, and consider your own skills and goals, before choosing.
Rick Bisio
How I Protect the Environment as a Green Cleaning Franchisee
Franchise Players

How I Protect the Environment as a Green Cleaning Franchisee

For Lindsay Dellasega, EcoMaids is the perfect combination of sustainable living and entrepreneurship.
Kate Taylor
Why Business Ownership Is an Exercise in Personal Development
Franchise Players

Why Business Ownership Is an Exercise in Personal Development

This franchisee coaches others to follow in her entrepreneurial footsteps.
Kate Taylor
Oreo Biscuits Are the Latest Food Mashup
Mashup

Oreo Biscuits Are the Latest Food Mashup

Atlanta-based Church's Chicken is hopping onto the fast-food mashup bandwagon for the first time.
Kate Taylor
Franchise Owners: Tell Us Your Story
Franchise Players

Franchise Owners: Tell Us Your Story

Some of the best advice for those looking to buy a franchise comes from those who have done it themselves. Here's your chance to help.
Kate Taylor
Helping Cancer Survivors as a Spa Franchisee
Franchise Players

Helping Cancer Survivors as a Spa Franchisee

As a Hand & Stone spa franchisee, Julie Bulatovic spearheaded a program to provide oncology treatments to people with cancer and their families.
Kate Taylor
Will Tesla Have to Franchise?
Tesla

Will Tesla Have to Franchise?

Elon Musk has hinted that Tesla may be considering a departure from the direct sales model, something industry insiders consider inevitable.
Kate Taylor
This Wings-Loving Regular Became a Franchisee to Save His Favorite Restaurant From Closing Up Shop
Franchise Players

This Wings-Loving Regular Became a Franchisee to Save His Favorite Restaurant From Closing Up Shop

When Chad Ragland heard the restaurant's owners were selling their Wild Wing Cafe location, he knew he had to take action.
Kate Taylor
An Artist Opens Up Her Own Paint-and-Sip Franchise
Franchise Players

An Artist Opens Up Her Own Paint-and-Sip Franchise

Working as an artist instructor at a Pinot's Palette studio convinced Emma Harvey to establish her own location.
Kate Taylor
The Big Lessons I Learned From My First Entrepreneurial Job
Entrepreneurs

The Big Lessons I Learned From My First Entrepreneurial Job

A painting enterprise during college provides illuminating insights for a business leader.
Miles Jennings
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Burger King Introduces Another Stomach-Turning Burger in Japan
Burger King

Burger King Introduces Another Stomach-Turning Burger in Japan

A burger topped with berries is the latest of Burger King Japan's bizarre fast food offerings.
Kate Taylor