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

Franchise Industry Strikes Back at NLRB's 'Joint Employer' Decision
Legal Center

Franchise Industry Strikes Back at NLRB's 'Joint Employer' Decision

The NLRB's recent ruling has the potential to tear the franchise model apart at the seams. So, franchisors and franchisees are taking action.
Kate Taylor
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Franchise Players: A Layoff Leads to a New Job as Franchisee
Franchise Players

Franchise Players: A Layoff Leads to a New Job as Franchisee

Kevin Ortner became Renters Warehouse first franchisee because he believed the young company could bring something fresh to the industry.
Kate Taylor
Franchise Players: A Junk Franchise That Only Sells to Veteran Franchisees
Franchise Players

Franchise Players: A Junk Franchise That Only Sells to Veteran Franchisees

JDog Junk Removal has one big prerequisite for every potential franchisee: they must be a military veteran.
Kate Taylor
Before You Jump Into the World of Franchises, Ask Yourself These 5 Questions
Franchise

Before You Jump Into the World of Franchises, Ask Yourself These 5 Questions

Think proven concept, not big brand, when buying a franchise.
Rick Bisio
Franchise Players: Finding a Franchise With a 'Family' Feel
Franchise Players

Franchise Players: Finding a Franchise With a 'Family' Feel

When Nathan Coombs retired from the military, DreamMaker Bath and Kitchen's company culture convinced him that the franchise was the right fit.
Kate Taylor
Franchise Players: Franchising Instead of 'Reinventing the Wheel'
Franchise Players

Franchise Players: Franchising Instead of 'Reinventing the Wheel'

Even though Steve Ferguson works with an established concept as a U.S. Lawns franchisee, his relationship building skills have helped him land $1 million in annual billings.
Kate Taylor
5 of the Wackiest Fast-Food Lawsuits Ever
Franchises

5 of the Wackiest Fast-Food Lawsuits Ever

Some of these lawsuits are hard to swallow, but justice can be sweet.
Carly Okyle
Activist Investor Tells Olive Garden to Google 'How to Cook Pasta'
Olive Garden

Activist Investor Tells Olive Garden to Google 'How to Cook Pasta'

Starboard Value published a snarky, almost 300-page presentation telling Darden Restaurants how to mend the struggling Olive Garden brand.
Kate Taylor
Franchise Players: Why Franchisees Have to Be Owners, Accountants, Janitors and Everything in Between
Franchise Players

Franchise Players: Why Franchisees Have to Be Owners, Accountants, Janitors and Everything in Between

Opening a franchise is very different than working in corporate America – and that's a good thing, according to this franchisee.
Kate Taylor
Report: 10 Brands Most Likely to Have Franchisees Default on Their Loans
Franchise

Report: 10 Brands Most Likely to Have Franchisees Default on Their Loans

Looking into buying a franchise? If you're taking out loans, avoid these big-name franchises.
Kate Taylor
Would You Eat Burger King's Black Cheeseburger?
Burger King

Would You Eat Burger King's Black Cheeseburger?

Burger King Japan is rolling out a burger that's treated with bamboo charcoal to give its cheese and buns and unnaturally dark shade.
Kate Taylor
Why Chipotle Won't Franchise
Franchise

Why Chipotle Won't Franchise

The mega-successful burrito chain says it probably won't go the franchising route. Here's why that's a smart move.
Kate Taylor
Franchise Players: I Used All My Money to Buy a Franchise
Franchise Players

Franchise Players: I Used All My Money to Buy a Franchise

Alison Paton invested her life savings to become a Papa John's franchisee 23 years ago.
Kate Taylor
Denny's Just Capitalized on Apple's Tech Glitch in a Genius Marketing Move
Social Media

Denny's Just Capitalized on Apple's Tech Glitch in a Genius Marketing Move

The restaurant chain was quick to latch onto Apple's tech glitch, creating a clever Twitter post that went viral in minutes.
Kate Taylor