Franchise

Cinnaholic Says Cinnamon Buns Are the Next Cupcakes, And 'Shark Tank' Agrees
Shark Tank

Cinnaholic Says Cinnamon Buns Are the Next Cupcakes, And 'Shark Tank' Agrees

The founders of Cinnaholic want to make their customizable cinnamon rolls a national brand. Here's how they snagged $200,000 on 'Shank Tank.'
Kate Taylor
Franchisees: How Well Do You Know Your State's Tax Code?
Papa Murphy's

Franchisees: How Well Do You Know Your State's Tax Code?

If take-and-back pizza franchisees don't know their state's sales tax and food stamps laws, they can lose big.
Kate Taylor
Franchise Players: How This Franchisee Runs 200 Oil Change Shops
Franchise Players

Franchise Players: How This Franchisee Runs 200 Oil Change Shops

Don Smith owns Valvoline franchises from coast to coast, with locations in 12 states with more than 1,000 employees.
Kate Taylor
Why 'Burgers for Breakfast' Is Actually a Win for Burger King
Burger King

Why 'Burgers for Breakfast' Is Actually a Win for Burger King

Burger King is making burgers and fries available during breakfast hours at 5,000 restaurants in the US.
Kate Taylor
Will Franchising Ever Be as Sexy as Tech? Subway Thinks So.
Subway

Will Franchising Ever Be as Sexy as Tech? Subway Thinks So.

More and more millennials want to be entrepreneurs, but few describe franchising as their dream business. Here's how Subway is trying to change that.
Kate Taylor
Franchisees: The Do's and Don'ts of Social Media
Franchise

Franchisees: The Do's and Don'ts of Social Media

Social media is a key way for franchisees to promote their business. Here are 12 big do's and don'ts.
Joe Prusha
McDonald's May Be Getting Into Seasoned Fries
McDonalds

McDonald's May Be Getting Into Seasoned Fries

McDonald's is mixing up its classic fries, testing shake-in seasoning packets.
Kate Taylor
Subway's Grand Plan to Take Over America
Subway

Subway's Grand Plan to Take Over America

Subway's vision of America's future: hummus, thinner slices of meat and 8,000 new U.S. shops.
Kate Taylor
Franchise Players: An Eco-Friendly Franchisee on Giving Back to His Community
Franchise Players

Franchise Players: An Eco-Friendly Franchisee on Giving Back to His Community

Over one year after Hurricane Sandy, this Junkluggers franchisee is still helping his community recover.
Kate Taylor
Franchise Players: Playing the Long Game as a Cleaning and Restoration Franchisee
Franchise Players

Franchise Players: Playing the Long Game as a Cleaning and Restoration Franchisee

This franchisee went from carpet cleaner to a top Rainbow International franchisee over the course of 27 years.
Kate Taylor
Franchise Players: Why Vets and Franchising Go Hand in Hand
Franchise Players

Franchise Players: Why Vets and Franchising Go Hand in Hand

Hector Rodriguez tried to make on his own in the world of business. Then he realized as a franchisee he didn't have to work without support.
Kate Taylor
How Six Immigrant Entrepreneurs Transformed Dreams Into Businesses
Immigrants

How Six Immigrant Entrepreneurs Transformed Dreams Into Businesses

They came to the U.S. from China, Grenada, India, Haiti, Nigeria and the former Soviet Union. Now they own businesses in food service and product sales -- and helping other startups. See how they landed launch capital and met challenges.
Sujan Patel
Franchise Players: With Endless Mosquitoes, This Franchisee's Work Is Never Done
Franchise Players

Franchise Players: With Endless Mosquitoes, This Franchisee's Work Is Never Done

In West Texas, mosquitoes are a constant curse. So, when Chad Armstrong opened a Mosquito Joe franchise, he knew he'd get plenty of business.
Kate Taylor
Franchise Players: This Franchisee Will Do Whatever it Takes to Provide for His Family
Franchise Players

Franchise Players: This Franchisee Will Do Whatever it Takes to Provide for His Family

Sergio Nunez made a living washing dishes, delivering milk, making hotel beds, working in construction and more before becoming a franchisee.
Kate Taylor
Franchise

A franchise is way for companies to expand their business by licensing the rights to third-party retailers or individuals -- or franchisees -- who then can use the franchise’s logo, name and business model.  

There are three different kinds of franchises. They include:

  • Distributorships, such as with Toyota, which licenses the right for a third party to sell the parent company product.

  • Trademark licensing, which allows companies to buy the right to use the parent company’s trademark along with their own brand, such as what Coca-Cola licenses to other companies.

  • Business format franchises, such as Subway, which offer its franchisees the right to sell its goods and/or services using its business model.

Popular franchises: Some examples of popular and well-known franchise models are in the food industry -- many which have gone international -- such as McDonald’sSubway and DominosStarbucks, which is commonly thought to be a franchise, is not. 

For more information about top franchise businesses, check out Entrepreneur's "2015 Franchise 500 Rankings," or get the Entrepreneur Franchise 500.  

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