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

Are Minimum-Wage Activists Trying to Kill the Franchise Model in Seattle?
Franchise

Are Minimum-Wage Activists Trying to Kill the Franchise Model in Seattle?

The International Franchise Association claims Seattle's new minimum wage law discriminates against franchisees, and says it's all one labor union's fault.
Kate Taylor
When Eating Out, Your Diet Goes Out the Window
Personal Health

When Eating Out, Your Diet Goes Out the Window

While the majority of people are watching their weight, a surprising number say they stop counting calories when dining out, a new study says.
Kate Taylor
Franchise Players: Exploring Unique Markets as a Multi-Unit Franchisee
Franchise Players

Franchise Players: Exploring Unique Markets as a Multi-Unit Franchisee

With 21 franchise locations in seven states, John Russell understands that just because different locations are under the same brand doesn't mean they are identical.
Kate Taylor
How Planet Fitness Aims to Become the McDonald's of Gym Franchises
Fitness Businesses

How Planet Fitness Aims to Become the McDonald's of Gym Franchises

Affordable, streamlined and closing in on 1,000 locations – can Chris Rondeau turn Planet Fitness into a mega-chain of McGyms?
Kate Taylor
5 Life Lessons That Made Me a Better Entrepreneur
Work-Life Balance

5 Life Lessons That Made Me a Better Entrepreneur

Some of the words of wisdom that guide my personal life have proved to be just as useful in the office.
Valerie Svenningsen
Franchise Players: How This Professor Became a Tutoring Franchisee
Franchise Players

Franchise Players: How This Professor Became a Tutoring Franchisee

After 19 years as a professor at the University of Portland, Dr. Mind Hsu turned his hobby of tutoring into a second career.
Kate Taylor
Our Top Innovative Franchises
Franchises

Our Top Innovative Franchises

Here are some companies finding new ways to do business.
Tracy Stapp Herold
Franchise Players: From Customer to Franchisee at an Automotive Franchise
Franchise Players

Franchise Players: From Customer to Franchisee at an Automotive Franchise

After finding himself out of a job, Eddie Warren turned his automotive skills and love for cars into a career.
Kate Taylor
Franchise Players: Army Vet Finds a New Team as a Marco's Pizza Multi-Unit Franchisee
Franchise Players

Franchise Players: Army Vet Finds a New Team as a Marco's Pizza Multi-Unit Franchisee

Returning to civilian life, Joe Walker found both comradery and a commitment to integrity in franchising.
Kate Taylor
Chick-fil-A Finally Enters the Fast-Food Coffee Battle
Chick-fil-A

Chick-fil-A Finally Enters the Fast-Food Coffee Battle

Watch out, Starbucks: Chick-fil-A is upping its breakfast game by putting a specialty-grade coffee on the menu.
Kate Taylor
Franchise Players: How This Couple Helped a New Orleans Franchise Expand in Arizona
Franchise Players

Franchise Players: How This Couple Helped a New Orleans Franchise Expand in Arizona

After moving from Texas to Arizona, this young couple decided to open up the first Painting with a Twist franchise in the state.
Kate Taylor
Franchise Players: Go-Getter Franchisee on Opening a BYOB Painting and Wine Franchise
Franchise Players

Franchise Players: Go-Getter Franchisee on Opening a BYOB Painting and Wine Franchise

This mother of twins wanted to open her own business, but nothing clicked until she discovered Bottle & Bottega.
Kate Taylor
Franchise Players: From International Entrepreneur to Fro-Yo Franchisee
Franchise Players

Franchise Players: From International Entrepreneur to Fro-Yo Franchisee

Brian Trager had worked everywhere from Costa Rica to Vietnam before opening up several Menchie's Frozen Yogurt locations in upstate New York.
Kate Taylor
Ex-Subway Franchisee Concocts a Bizarre $35 Million Blackmail Plot
Franchise

Ex-Subway Franchisee Concocts a Bizarre $35 Million Blackmail Plot

A leaked video, a disgruntled former franchisee and questions regarding Subway's healthiness set a strange blackmail scheme into motion.
Kate Taylor