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.

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News and Articles About Franchise

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
Why August Was a Terrible Month for McDonald's
McDonalds

Why August Was a Terrible Month for McDonald's

McDonald's reported a 3.7 percent drop in global sales in August on Tuesday.
Kate Taylor
Why Leeza Gibbons Just Bought a Senior Care Franchise
Franchise

Why Leeza Gibbons Just Bought a Senior Care Franchise

The former talk show host turned to senior care franchising after caring for her mother following her Alzheimer's diagnosis.
Kate Taylor
Franchise Players: How a Newspaper Editor Developed an Entrepreneurial Mindset Through Franchising
Franchise Players

Franchise Players: How a Newspaper Editor Developed an Entrepreneurial Mindset Through Franchising

As the newspaper industry struggled, Chris Meyer decided it was time to take a leap as an entrepreneur.
Kate Taylor
Georgia Dealerships Attack Tesla's Direct Sales Model
Tesla

Georgia Dealerships Attack Tesla's Direct Sales Model

Georgia is the latest state to attack the electric car company for selling cars directly to customers instead of through auto dealerships.
Kate Taylor
Franchise or New Venture? That Depends on You.
Starting a Business

Franchise or New Venture? That Depends on You.

Here are some quick gut checks and questions to ask yourself to determine what path you should embark on.
Rick Bisio
Franchise Players: I Turned My Small Biz Into a Franchised Location
Franchise Players

Franchise Players: I Turned My Small Biz Into a Franchised Location

After two decades in the custom closet business, Truman Jepson converted his small business into a franchised location of Closets by Design.
Kate Taylor
Franchise Players: Entering a Foreign Market Through Franchising
Franchise Players

Franchise Players: Entering a Foreign Market Through Franchising

After 55 years operating in the pharmaceutical business in Mexico, Medix decided to enter the American market as a Medifast franchisee.
Kate Taylor
Fast-Food Workers to Strike in 150 Cities Across the U.S.
Legal Center

Fast-Food Workers to Strike in 150 Cities Across the U.S.

Fast-food workers are planning a strike this week that could be the largest yet as the responsibilities of franchisors and franchisees continue to be battled in court.
Kate Taylor
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Franchise Players: 'Marketing Is Still My Biggest Challenge'
Franchise Players

Franchise Players: 'Marketing Is Still My Biggest Challenge'

Ramona Streit became a home care franchisee eight years ago. Here's how she made her decision and what she has learned along the way.
Kate Taylor
Franchise Players: From Making Minimum Wage to Running the Show
Franchises

Franchise Players: From Making Minimum Wage to Running the Show

When she was 16, Dulce Luevano was making $5.15 working at CiCi's Pizza. Now, she owns her own shop.
Kate Taylor
Franchise Players: Why One Franchise Wasn't Enough
Franchise Players

Franchise Players: Why One Franchise Wasn't Enough

Passion for her product drove Sanden Andrews to open up four Smoothie King shops.
Kate Taylor