How to Franchise Business

How to Franchise Business: If you are like many successful business owners, you are wondering how to franchise your business. In its simplest form franchising is a method of distribution for products and services, whereby someone develops a successful method (the franchisor) and licenses others to use their name and methods (the franchisee). The franchisee is thus able to buy into an established system and name to greatly enhance their opportunity for success while the franchisor teaches their methods in exchange for an ongoing fee (the royalty) and usually an upfront fee (the franchise fee).

Impact of Franchise Businesses

Franchising is all around us with over 900,000 franchise businesses in the United States. Consider the impact that franchising has had on some of these business areas and how franchising has revolutionized these industries:

Pizza: Dominoes, Papa Johns, Pizza Hut, Little Ceasers, Sbarro, CiCi’s, Papa Murphy
Hamburgers: McDonalds, Burger King, Wendys, Five Guys
Sandwiches: Subway, Quiznos, Jimmy Johns, Firehouse Subs, Blimpie
Fast Food: KFC, Taco Bell, Dunkin Donuts, Arby’s, Sonic, Dairy Queen, Chick-fil-A
Restaurants: Panera, Tim Horton’s, Applebee’s, Chili’s
Real Estate: Coldwell Banker, Century 21, Prudential, Keller Williams, ERA
Retail: Ace Hardware, Radio Shack, Aaron’s Rents, GNC, Athlete’s Foot
Education: Huntington, Kumon, Goddard,
Motels: Marriott, Hilton, Holliday Inn, Sheraton, Hampton Inn, Comfort Inn, Courtyard, Westin
Convenience Stores: 7-Elevan, Circle K, AmPm
Services: Liberty Tax, H&R Block, ServiceMaster, Stanley Steamer, Coverall, Roto Rooter, Jani-King, Jackson Hewitt
Rental Car: Dollar, Thrifty
Automotive: Midas, Jiffy Lube, Macco, Meineke, Volvo Rents
Fitness: Curves, 24 Hour Fitness, Snap Fitness, Golds, Jenny Craig
Business Services: Sign-a-rama, Minuteman Press, Val-Pak, Allegra, Sir Speedy, Alpha Graphics, PostNet, UPS Stores
Medical: Home Instead, Home Helpers, Senior Helpers, Comfort Keepers
Haircair: Fantastic Sams, Sportsclips, SuperCuts

The franchise is a contractual relationship between the franchisor and the franchisee, so at the center of the franchise is the contract or the Franchise Disclosure Documents (FDD).