Franchises
6 Reasons Why Startups Are Riskier Than Franchise Businesses
More From This Topic
Dunkin' Donuts Announces Big Rebrand. 3 Things to Know Today.
Why Dunkin' Donuts Is Removing 'Donuts' From Its Name
Papa John's Files Trademark to Lose Its Apostrophe and Spotlights New 'Papas' Who Aren't Its Founder
Chick-fil-A Makes More Per Restaurant Than McDonald's, Starbucks and Subway Combined … and It's Closed on Sundays
5 Steps of the New Model of Revenue Recognition for Franchisors
The Top 5 Business Service Franchises From the Franchise 500
These Roommates Changed Their Lives for a Sandwich -- and Built a Franchise Empire
It's Easy to Steal a Tesla! 3 Things to Know Today.
I Survived 9/11 but My Business Didn't. This Is What I Learned From Rebuilding.
After Nearly Going Bankrupt, How Franchise Jersey Mike's Fought Back and Won
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.
