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

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
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