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

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
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.
Kate Taylor
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
Iced Coffee Too Cold to Hold? Dunkin' Franchisees Have Final Say on 'Double Cupping.'
Coffee

Iced Coffee Too Cold to Hold? Dunkin' Franchisees Have Final Say on 'Double Cupping.'

Individual franchisees can decide whether to charge customers for putting a foam cup around a plastic cup of iced coffee.
Kate Taylor
Franchise Players: Why This Entrepreneur Invested in a Trampoline Park Franchise
Franchise Players

Franchise Players: Why This Entrepreneur Invested in a Trampoline Park Franchise

Phil Stoops found a career as a Sky Zone franchisee after two decades in corporate America.
Kate Taylor
McDonald's Profit Plunges 30 Percent as Traffic Continues to Fall
Franchise

McDonald's Profit Plunges 30 Percent as Traffic Continues to Fall

The fast-food giant is struggling to retain customers domestically and abroad.
Katie Little
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
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