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

Chipotle Employees Claim the Chain Isn't as Worker-Friendly as You Think
Chipotle

Chipotle Employees Claim the Chain Isn't as Worker-Friendly as You Think

Employees at the burrito chain are suing for wage theft in two states.
Kate Taylor
Finding Success as a Female Franchisee in a Male-Dominated Industry
Franchise Players

Finding Success as a Female Franchisee in a Male-Dominated Industry

'The Flooring Girl' has made her gender an asset in the flooring business.
Kate Taylor
As Football Season Approaches, Buffalo Wild Wings Raises Prices
Chicken

As Football Season Approaches, Buffalo Wild Wings Raises Prices

The chicken wings chain said that rising chicken costs means menu prices will increase by 3 percent.
Kate Taylor
Franchise Players: Finding a Balanced Life as a Pure Barre Franchisee
Franchise Players

Franchise Players: Finding a Balanced Life as a Pure Barre Franchisee

Lauren Fike loved the challenges of commercial real estate, but knew she needed an outlet for her entrepreneurial spirit that matched her passion for health and fitness.
Kate Taylor
Taco Bell Now Lets You Order and Pay Ahead by Smartphone
Mobile Payments

Taco Bell Now Lets You Order and Pay Ahead by Smartphone

Taco Bell is now the first fast-food chain to offer nationwide mobile ordering and payments for both drive-thru and dining room orders.
Kate Taylor
Franchise Players: From Finance to a Million-Dollar Franchise
Franchise Players

Franchise Players: From Finance to a Million-Dollar Franchise

In less than four years, Stacy Huston's Handyman Matter franchise location grossed more than a million dollars.
Kate Taylor
Franchise Players: Why a Painting Franchise Was the Right Cultural Fit for This Veteran
Franchise Players

Franchise Players: Why a Painting Franchise Was the Right Cultural Fit for This Veteran

Stephen Luxion knew CertaPro Painters was the right fit for him because of the tough-love culture, which reminded him of his Air Force roots.
Kate Taylor
Franchise Players: How This Entrepreneur From a Franchising Family Chose to Open Her Own Signarama
Franchise Players

Franchise Players: How This Entrepreneur From a Franchising Family Chose to Open Her Own Signarama

Maggie Harlow knew plenty about franchising before becoming a franchisee. But, she didn't want to take over the family business.
Kate Taylor
Franchise Players: Why This Serial Entrepreneur Became a Johnny Rockets Franchisee
Franchise Players

Franchise Players: Why This Serial Entrepreneur Became a Johnny Rockets Franchisee

Five years ago, Marriette Simoni brought her experience as a real estate and luxury brand entrepreneur to the Johnny Rockets franchise.
Kate Taylor
6 Essential Traits of Successful Entrepreneurs
Starting a Franchise Business

6 Essential Traits of Successful Entrepreneurs

Are you ready to take the plunge and run a franchise business?
Rick Bisio
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Chicken Craze Continues as Wingstop Plans IPO
IPO

Chicken Craze Continues as Wingstop Plans IPO

Chicken-wings chain Wingstop is plotting a $100 million IPO, according to reports.
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Dunkin' Brands: Hitting 2014 Sales Goals Won't Be Easy
Franchise

Dunkin' Brands: Hitting 2014 Sales Goals Won't Be Easy

The parent company of Dunkin' Donuts and Baskin-Robbins reported a better-than-expected quarterly profit, but said hitting annual sales targets will be a challenge.
Franchise Players: I Became a Franchisee Fresh Out of College
Franchise Players

Franchise Players: I Became a Franchisee Fresh Out of College

Chris Drucquer became a franchisee soon after graduating college. Twenty-two years later, he says he's just getting started.
Kate Taylor
The 'Smart Slice' Is Coming: 5 Fast-Food Trends for 2015
Franchise

The 'Smart Slice' Is Coming: 5 Fast-Food Trends for 2015

From Taco Bell to Dunkin Donuts, fast-food giants are innovating heavily as they look to take a bigger bite of the market.
Brian Sozzi