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

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
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
Franchise Players: A Former JAG Officer on Finding the Right Fit
Franchise Players

Franchise Players: A Former JAG Officer on Finding the Right Fit

Lorna Ross knew she wanted to run her own business. With the help of a franchise consultant, she was able to become a ShelfGenie franchisee with confidence.
Kate Taylor
California Governor Vetoes Bill That Would Expand Franchisee Rights
Franchise

California Governor Vetoes Bill That Would Expand Franchisee Rights

Franchisors and franchisees are divided over the veto of a California bill that would make it more difficult to terminate franchise agreements.
Kate Taylor
Franchise Players: A Franchising Power Couple on Making Tough Decisions
Franchise Players

Franchise Players: A Franchising Power Couple on Making Tough Decisions

This husband-wife duo doesn't believe there is such thing as working too hard, as co-franchisees of two BrightStar Care franchises.
Kate Taylor
Franchise Players: From Translator to Franchisee at a Tax Franchise
Franchise Players

Franchise Players: From Translator to Franchisee at a Tax Franchise

Dulce Cuevas has worked nearly every position possible at Liberty Tax: translator, bilingual tax preparer, tax school instructor, manager and finally multi-unit franchisee.
Kate Taylor
Flat Year for Fast-Food Is Bad News for the Restaurant Business
Restaurants

Flat Year for Fast-Food Is Bad News for the Restaurant Business

While fine dining visits were up 3 percent from last year, quick-service restaurants fell flat.
Kate Taylor
Franchise Players: From Waiting Tables to Running a Healthy Vending Machine Franchise
Franchise

Franchise Players: From Waiting Tables to Running a Healthy Vending Machine Franchise

After working his way up from waiter to franchise owner at Outback Steakhouse, Cecil Tyrell Whisenton decided to try his hand at healthy vending franchising.
Kate Taylor
Franchise Industry Strikes Back at NLRB's 'Joint Employer' Decision
Franchise

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
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