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.

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News and Articles About Franchise

To Franchisees, McDonald's Arches Aren't Looking So Gold
McDonalds

To Franchisees, McDonald's Arches Aren't Looking So Gold

Slipping sales, negative momentum and ‘zero creativity' has franchisees worried, a new survey says.
Kate Taylor
Does the Franchise Industry Have a Turnover Problem?
Franchise

Does the Franchise Industry Have a Turnover Problem?

For every 10 new franchises that open in the U.S., nine close, according to a new report.
Kate Taylor
Franchise Players: A Former Cop Takes On Running a Cleaning Franchise
Franchise Players

Franchise Players: A Former Cop Takes On Running a Cleaning Franchise

This former police officer went from working in a former war zone in Bosnia to running a Merry Maids franchise.
Kate Taylor
Franchise Players: How Being Forced to Fire Myself Led to My Career in Franchising
Franchise Players

Franchise Players: How Being Forced to Fire Myself Led to My Career in Franchising

After losing his job on his second day in a new city, Connor Ferguson found a new career in urgent care franchising.
Kate Taylor
There's Lots of Free Help for Choosing and Funding the Right Franchise Opportunity
Starting a Franchise Business

There's Lots of Free Help for Choosing and Funding the Right Franchise Opportunity

Franchises have the allure of a ready-made business but it's more complicated than that.
Kedma Ough
At Jimmy John's, Sandwich Makers Have to Sign a Noncompete Agreement
Managing Employees

At Jimmy John's, Sandwich Makers Have to Sign a Noncompete Agreement

Noncompete agreements are often reserved for executives. Why, then, does this sandwich chain ban entry-level workers from working for competitors for two years?
Kate Taylor
Franchise Players: Why I Became a Franchisee at 40
Franchise Players

Franchise Players: Why I Became a Franchisee at 40

Lynne Lawson always wanted to be an interior decorator. When she turned 40, she decided it was finally time to leave her career as an IBM exec and take the plunge.
Kate Taylor
Why Franchisees Don't Use Digital Advertising
Online Marketing

Why Franchisees Don't Use Digital Advertising

A new study reveals that local affiliates' top reason for avoiding social media and digital advertising is because they are 'too complicated.'
Kate Taylor
Franchise Players: Why This Pastor Quit the Ministry and Became a Franchisee at 43
Franchise Players

Franchise Players: Why This Pastor Quit the Ministry and Became a Franchisee at 43

Seeking a new chance to be directly involved in others' lives, Page Cole made the career switch from minister to senior care franchisee.
Kate Taylor
Dessert, Re-Designed
Franchises

Dessert, Re-Designed

American food franchises are offering treats that satisfy refined tastes.
Franchise Players: Investing in a Unique Healthcare Franchise
Franchise Players

Franchise Players: Investing in a Unique Healthcare Franchise

In three years, OsteoStrong has gone from zero to commitments for 500 units in nine states. Here's why this couple signed on to the franchise.
Kate Taylor
Franchise Players: I Went From Franchisor to Retiree to Franchisee
Franchise Players

Franchise Players: I Went From Franchisor to Retiree to Franchisee

When Kurt Kittleson came out of retirement, it was to become the franchisee of a brand he knew very well: the company he founded decades earlier.
Kate Taylor
Franchise Players: How This Seasoned Franchisee Revived 3 Struggling Baskin-Robbins Locations
Franchise Players

Franchise Players: How This Seasoned Franchisee Revived 3 Struggling Baskin-Robbins Locations

Just one year after Binoy Kothari bought three underperforming Baskin-Robbins, he was able to turn a profit. Now, he's buying more.
Kate Taylor
The Dirty Little Secrets Lurking in Your Franchise Contract
Franchise

The Dirty Little Secrets Lurking in Your Franchise Contract

A real estate professional with multiple offices discovers critical terms of her business arrangement the hard way.
Stacey Alcorn
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