Franchise

McDonald's Profit Plunges 30 Percent as Traffic Continues to Fall
Franchise

McDonald's Profit Plunges 30 Percent as Traffic Continues to Fall

The fast-food giant is struggling to retain customers domestically and abroad.
Katie Little
To Franchisees, McDonald's Arches Aren't Looking So Gold
McDonalds

To Franchisees, McDonald's Arches Aren't Looking So Gold

Slipping sales, negative momentum and ‘zero creativity' has franchisees worried, a new survey says.
Kate Taylor
Does the Franchise Industry Have a Turnover Problem?
Franchise

Does the Franchise Industry Have a Turnover Problem?

For every 10 new franchises that open in the U.S., nine close, according to a new report.
Kate Taylor
Franchise Players: A Former Cop Takes On Running a Cleaning Franchise
Franchise Players

Franchise Players: A Former Cop Takes On Running a Cleaning Franchise

This former police officer went from working in a former war zone in Bosnia to running a Merry Maids franchise.
Kate Taylor
Franchise Players: How Being Forced to Fire Myself Led to My Career in Franchising
Franchise Players

Franchise Players: How Being Forced to Fire Myself Led to My Career in Franchising

After losing his job on his second day in a new city, Connor Ferguson found a new career in urgent care franchising.
Kate Taylor
Starting a Franchise Business

There's Lots of Free Help for Choosing and Funding the Right Franchise Opportunity

Franchises have the allure of a ready-made business but it's more complicated than that.
Kedma Ough
At Jimmy John's, Sandwich Makers Have to Sign a Noncompete Agreement
Managing Employees

At Jimmy John's, Sandwich Makers Have to Sign a Noncompete Agreement

Noncompete agreements are often reserved for executives. Why, then, does this sandwich chain ban entry-level workers from working for competitors for two years?
Kate Taylor
Franchise Players: Why I Became a Franchisee at 40
Franchise Players

Franchise Players: Why I Became a Franchisee at 40

Lynne Lawson always wanted to be an interior decorator. When she turned 40, she decided it was finally time to leave her career as an IBM exec and take the plunge.
Kate Taylor
Why Franchisees Don't Use Digital Advertising
Online Marketing

Why Franchisees Don't Use Digital Advertising

A new study reveals that local affiliates' top reason for avoiding social media and digital advertising is because they are 'too complicated.'
Kate Taylor
Franchise Players: Why This Pastor Quit the Ministry and Became a Franchisee at 43
Franchise Players

Franchise Players: Why This Pastor Quit the Ministry and Became a Franchisee at 43

Seeking a new chance to be directly involved in others' lives, Page Cole made the career switch from minister to senior care franchisee.
Kate Taylor
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

A franchise is way for companies to expand their business by licensing the rights to third-party retailers or individuals -- or franchisees -- who then can use the franchise’s logo, name and business model.  

There are three different kinds of franchises. They include:

  • Distributorships, such as with Toyota, which licenses the right for a third party to sell the parent company product.

  • Trademark licensing, which allows companies to buy the right to use the parent company’s trademark along with their own brand, such as what Coca-Cola licenses to other companies.

  • Business format franchises, such as Subway, which offer its franchisees the right to sell its goods and/or services using its business model.

Popular franchises: Some examples of popular and well-known franchise models are in the food industry -- many which have gone international -- such as McDonald’sSubway and DominosStarbucks, which is commonly thought to be a franchise, is not. 

For more information about top franchise businesses, check out Entrepreneur's "2015 Franchise 500 Rankings," or get the Entrepreneur Franchise 500.  

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