Franchises
The Top 10 Best Franchises to Open in 2019
More From This Topic
#3 on the Franchise 500: Sonic Drive-In Looks to the Future
#4 on the Franchise 500: Why Taco Bell Has Its Sights Set On Your City
#5 on the Franchise 500: The UPS Store Gets a Consumer-Friendly Makeover
#6 on the Franchise 500: Culver's Succeeds By Investing In Managers
#7 on the Franchise 500: Planet Fitness Plans to Dominate the Fitness World
#8 on the Franchise 500: Great Clips Reinvents the Haircut Experience
#9 on the Franchise 500: Jersey Mike's Succeeds By Supporting Its Franchisees
#10 on the Franchise 500: How 7-Eleven Plans to Double In Size In the U.S. By 2027
To Make 1-800-Got-Junk A Success, Its Founder Had To Rethink Everything (Including Himself)
Five Ways to Finance a Franchise
Franchising is a 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 withToyota, 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 of which have gone international -- such as McDonald's, Subway and Pizza Hut. Starbucks, which is commonly thought to be a franchise, is not.
For more information about top franchise businesses, check out Entrepreneur's 2016 Franchise 500® Rankings, or get the Entrepreneur Franchise 500.
