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: 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
Why the Court's Ruling on FedEx Drivers Could Jeopardize the Franchise Model
Franchise

Why the Court's Ruling on FedEx Drivers Could Jeopardize the Franchise Model

In the latest lawsuit that attempts to define the line between independent entrepreneur and employee, the court ruled that FedEx Ground drivers are employees, not independent contractors.
Kate Taylor
Franchise Players: These Panera Bread Franchisees Now Have 34 Locations
Franchise Players

Franchise Players: These Panera Bread Franchisees Now Have 34 Locations

Two franchisees spill on how they managed to make this fast-casual staple catch on in New England.
Kate Taylor
In $11 Billion Deal, Burger King Scoops Up Tim Hortons and Heads to Canada
Burger King

In $11 Billion Deal, Burger King Scoops Up Tim Hortons and Heads to Canada

It's official: Burger King is buying coffee and doughnuts chain Tim Hortons for approximately $11 billion, with financing help from Warren Buffet.
Kate Taylor
Franchise Players: Former NFL Wide Receiver Buys a Sandwich Franchise
Franchise Players

Franchise Players: Former NFL Wide Receiver Buys a Sandwich Franchise

After retiring from the NFL, Troy Williamson decided to open a Which Wich restaurant in Aiken, S.C., where he grew up.
Kate Taylor
Burger King in Talks to Buy Tim Hortons, Move to Canada
Burger King

Burger King in Talks to Buy Tim Hortons, Move to Canada

Burger King and Tim Hortons announced on Monday that they are discussion a merger, with Burger King corporate potentially moving to Canada.
Kate Taylor
Buying a Franchise? When You Need to Worry About Location.
Location

Buying a Franchise? When You Need to Worry About Location.

A look at the common fears of aspiring franchisees when it comes to choosing their franchise location.
Joel Libava