Franchises

Facing Slumping Sales in India, McDonald's Makes Rare Change to Big Mac
Franchises

Facing Slumping Sales in India, McDonald's Makes Rare Change to Big Mac

India holds lots of potential for fast food chains, but new competitors have forced big eateries to keep things fresh.
Lindsay Friedman
The Key to Working Well With Your Franchisees
Franchises

The Key to Working Well With Your Franchisees

To create a business relationship that's a win-win for both sides, you must communicate with your franchisees. Follow these tips.
Mark Siebert
Franchise of the Day: This Company Was Founded and Franchised the Same Day
Franchise of the day

Franchise of the Day: This Company Was Founded and Franchised the Same Day

As a private company, this cleaning franchise is based in California.
Lindsay Friedman
When and Why Franchises Seek Investors
Franchises

When and Why Franchises Seek Investors

Franchises take steps to attract deep-pocketed investors from the start.
WATCH: McDonald's New Anime Recruitment Video Tugs at the Heartstrings
Franchises

WATCH: McDonald's New Anime Recruitment Video Tugs at the Heartstrings

The company appeals to your 'future self' in an attempt to attract new part-time employees in Japan.
Lindsay Friedman
Our Franchise 500's Top 10 Most Popular Retail Companies
Franchise 500

Our Franchise 500's Top 10 Most Popular Retail Companies

From 7-Eleven to Rent-a-Center, these businesses understand the bottom line. From 7-Eleven to Mac Tools, here are the franchises with the most number of stores.
Lindsay Friedman
Ohio Woman Leaves a Career on Campus to Make Learning Fun With Legos at Snapology
Franchise Players

Ohio Woman Leaves a Career on Campus to Make Learning Fun With Legos at Snapology

Gina Cuffari uses building blocks to provide local kids with a holistic and entertaining after-school educational experience.
Erin Schultz
Franchise of the Day: This Franchise Name Was Determined From a Coin Toss
Franchise of the day

Franchise of the Day: This Franchise Name Was Determined From a Coin Toss

Years later, the this ice cream franchise has spread to nearly 50 countries.
Lindsay Friedman
Beer Is Coming to Select Burger King Locations in the U.K.
Franchises

Beer Is Coming to Select Burger King Locations in the U.K.

The fast-food franchise says the move is really just its way of catching up with competitors such as McDonald's.
Lindsay Friedman
This Lego Franchise Snaps Together a Winning Retail Formula
Franchisors

This Lego Franchise Snaps Together a Winning Retail Formula

Bricks & Minifigs isn't playing around at the franchise game.
Tracy Stapp Herold
Taco Bell Digs on Food Porn With New Breakfast Ads
Franchises

Taco Bell Digs on Food Porn With New Breakfast Ads

The franchise mocks the popular video series with their own take on the trend.
Lindsay Friedman
Meet the Guys Who Want to Fund Your Franchise
Franchisors

Meet the Guys Who Want to Fund Your Franchise

The Franchise Funding Group wants to do things differently.
Franchise of the Day: This Business-Center Concept Got Its Start By Acquiring Mail Boxes, Etc.
Franchise of the day

Franchise of the Day: This Business-Center Concept Got Its Start By Acquiring Mail Boxes, Etc.

Created as an alternative to the post office, this franchise acquired Mail Boxes, Etc. in 2001, rebranded the stores and now has more than 4,800 locations.
Lindsay Friedman

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.