What is a franchise?

A franchise is not a business type like a corporation, partnership, or LLC. It actually refers to an agreement between a franchisor and a franchisee. The franchisor is usually a corporation that has developed a turnkey business solution that gives individuals or franchisees, the ability to open a similar business under their corporate umbrella. The franchise agreement will authorize use of the franchisor’s trademarks, service agreements, and other identities in exchange for a front-end fee and a percentage of sales. The franchisee will often receive other benefits that a typical start-up would not, thereby reducing much of the risk involved in starting a business.

Some of the more popular corporations that allow franchising are listed below.

• McDonald’s
• Subway
• 7-Eleven
• Supercuts
• H & R Block
• Dunkin’ Donuts
• Pizza Hut
• Hardee’s
• Denny’s
• Days Inn
• KFC
• Ace Hardware
• Cold Stone Creamery
• Super 8
• Merry Maids
• Taco Bell
• Baskin-Robbins

See other top franchises at Entrepreneur.com