What Does Franchise Mean?

In a franchise business model, one business (the franchisee) pays another business (the franchisor) to the use the good will, trademarks, copyrights and general business practices of the franchisor in return for being allowed to operate that business model. The franchisor will require a portion of the revenue generated by franchisee and will require franchisee to subscribe and receive certain training in how to operate that business. All franchisees must establish procedures that remain consistent with a franchisor’s published standards. While you may be the “boss” of your “franchise,” you do so only in accordance with the trademark guidelines, business outlines and education provided by the franchisor. Leveraging a ready-made brand and business of a franchisor can be very lucrative as it allows you to avoid to the hazards of launching an untested new concept.

What Types Of Franchises Can I Choose From?

Franchises all differ by industry, and there are different rules for each type franchise. Franchises can include restaurants like McDonalds, Chick-fil-A, KFC, and Pizza hut; however, franchises exist in nearly every type of industry.  Below are some of the top franchises in 2019 by industry: