The Franchise Industry




It is estimated that 1 in 11 U.S. business establishments is a franchise…A new franchise opens every 8 minutes of every business day…There are approximately 4,000 franchisors and over 700,000 franchise units open and operating in the United States. Franchising is a large component of all small business development. So what exactly is franchising and why is franchising so popular?


A franchise is business method that involves the licensing of trademarks and methods of doing business. It is a relationship based on a contractual agreement in which the franchisor grants a license to the franchisee to operate a unit of the business model. The franchisor grants the franchisee the right to use a developed concept, service or product. This may include use of a brand name, trademark, processes and other resources. In exchange for the use of these items, the franchisee pays the franchisor an on-going royalty on a pre-determined basis (weekly, bi-weekly, etc.). The franchisee will sign a franchise agreement, which will detail each parties role in conducting business. This is standard for anybody who wishes to buy a new franchise.


While the franchising industry is literally hundred of years old, is popularity has skyrocketed in recent decades. Dozens of Industries, and thousands of companies, rely on the franchise model to deliver name brand goods and services to consumers.


Once a franchise agreement is signed and a buyer is ready to open a new franchise, the franchisor can provide a wide variety of services to the franchisee to help them open a franchise location. This can include:

  • Franchise Financing
  • Site selection
  • Training
  • Operations and Marketing manuals
  • Advertising
  • Inventory

Franchising is a successful business model and the choice of thousands of entrepreneur’s each and every year.




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