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

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
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
Why I Left My Fast-Food Operations Job to Open a Franchise of My Own
Franchise Players

Why I Left My Fast-Food Operations Job to Open a Franchise of My Own

After 34 years in the restaurant industry, Bryan Rhodes decided to open his own Window Genie franchise.
Kate Taylor
From Pro Football to Fitness Franchisee
Franchise Players

From Pro Football to Fitness Franchisee

Here's how this former NFL player became a Snap Fitness franchise owner.
Kate Taylor
Why This Startup Co-Founder Became a Franchisee
Franchise Players

Why This Startup Co-Founder Became a Franchisee

One would think raising three kids and acting as CMO for a tech startup would be enough of a challenge, but Riza Ayson wanted more.
Kate Taylor
How I Opened a Franchise With My Future Father-in-Law
Franchise Players

How I Opened a Franchise With My Future Father-in-Law

At age 26, Paul Dalrymple decided to open a Buffalo's Cafe with a business partner who would eventually become his father-in-law. They now co-own five locations.
Kate Taylor
Family of Restaurateurs Sign On as Senior Care Franchisees
Franchise Players

Family of Restaurateurs Sign On as Senior Care Franchisees

The Savoie family serves their community through entrepreneurship, whether they are running restaurants or operating Executive Care franchises.
Kate Taylor
Why It's Key for Franchisees to Have an Exit Strategy
Franchise

Why It's Key for Franchisees to Have an Exit Strategy

You may not realize it when you buy a franchise, but franchising is a journey. And, every journey must eventually come to an end.
Joel Hall
McDonald's Goes 12 Months Without U.S. Sales Growth; Execs Promise Customization and 'Convenient' Payments
McDonalds

McDonald's Goes 12 Months Without U.S. Sales Growth; Execs Promise Customization and 'Convenient' Payments

Even though McDonald's same-stores sales declined in October, the fast-food chain was able to beat analysts' expectations.
Kate Taylor
Why This Pastor and Father of 4 Opened Up a Sandwich Franchise
Franchise Players

Why This Pastor and Father of 4 Opened Up a Sandwich Franchise

Jerry Lewin discovered franchising as a new way to help people, while continuing his work as a pastor.
Kate Taylor
A Nonprofit Director Raises Funds With a Blimpie Franchise
Franchise Players

A Nonprofit Director Raises Funds With a Blimpie Franchise

When Bobby Calvillo realized the Affordable Home of South Texas didn't have the funds to build the homes low-income families needed, he took matters into his own hands.
Kate Taylor
Leaving Corporate America for Franchising After 30 Years
Franchise Players

Leaving Corporate America for Franchising After 30 Years

Paul Deal didn't know what to expect when he opened a one-man business as a Floor Coverings International franchisee. Here's what he's learned.
Kate Taylor
Restaurants Aside, Employment in the Franchise Industry Slumps in October (Infographic)
Franchise

Restaurants Aside, Employment in the Franchise Industry Slumps in October (Infographic)

Job growth in the franchise industry slowed down in the second half of 2014, compared to a strong growth March through June.
Kate Taylor