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

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
The Real Reason Business Travelers Love Fast-Food (Hint: It's Not Because They're Big Mac Addicts)
Business Travel

The Real Reason Business Travelers Love Fast-Food (Hint: It's Not Because They're Big Mac Addicts)

A new report shows that the three restaurants business travelers expense the most are Starbucks, McDonald's and Panera Bread. Here's why.
Kate Taylor
Franchise Players: How This Popcorn Franchisee Gets Business Popping
Franchise Players

Franchise Players: How This Popcorn Franchisee Gets Business Popping

Melanie Kittrell knows that people love popcorn. So, she's working to find new ways to sell it to eager customers.
Kate Taylor
Chick-fil-A Tries to Appeal to New Yorkers By Updating Image
Chick-fil-A

Chick-fil-A Tries to Appeal to New Yorkers By Updating Image

The socially conservative chicken chain is expanding into urban locations in 2014, including New York City.
Kate Taylor
Franchise Players: Serving Up Sweet Tea at a Southern Franchise With a 'Radical Fan Base'
Franchise Players

Franchise Players: Serving Up Sweet Tea at a Southern Franchise With a 'Radical Fan Base'

Bojangles' is known for having some of the most dedicated customers in the industry. Kristal Beaver would know -- she was one prior to becoming a franchisee.
Kate Taylor
Bankrupt Quiznos Settles With Franchisees in Cost Dispute
Quiznos

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
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