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

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.
Minimum Wage

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
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
A Barbecue-Cleaning Franchise Gets Fired Up
Franchises

A Barbecue-Cleaning Franchise Gets Fired Up

Grill-cleaning can make for a grate opportunity for franchisees.
Franchise Players: A Pet Care Franchisee Changed Her Life at 21
Franchise Players

Franchise Players: A Pet Care Franchisee Changed Her Life at 21

As a 21-year-old business novice, Lauren Morenz found meaning in her job as a Fetch! Pet Care franchisee.
Kate Taylor
Franchise Players: How I Turned Military Lessons Into Business Success
Franchise Players

Franchise Players: How I Turned Military Lessons Into Business Success

Andrew Wilson hasn't let the fact that he's spent five of the last 10 years deployed slow him down as a franchisee.
Kate Taylor
Franchise Players: How I Found Love at a Carpet Cleaning Convention
Franchise Players

Franchise Players: How I Found Love at a Carpet Cleaning Convention

For this franchisee, franchising allowed her to serve others – and find the love of her life.
Kate Taylor
A Yoga Franchise for Kids Stretches Bodies and Minds
Franchises

A Yoga Franchise for Kids Stretches Bodies and Minds

Imagination Yoga uses storytelling to encourage kids to move through a series of yoga positions.
Tracy Stapp Herold
In Sexual Harassment Case, California Rules Domino's Isn't Responsible for Misconduct
Franchise

In Sexual Harassment Case, California Rules Domino's Isn't Responsible for Misconduct

The California Supreme Court ruled that Domino's could not be held liable as an employer in an employee's sexual harassment case.
Kate Taylor