{"id":335,"date":"2024-12-31T09:58:56","date_gmt":"2024-12-31T14:58:56","guid":{"rendered":"https:\/\/franzy.com\/blog\/?p=335"},"modified":"2025-07-30T15:51:57","modified_gmt":"2025-07-30T20:51:57","slug":"franchising-101","status":"publish","type":"post","link":"https:\/\/franzy.com\/blog\/franchising-101\/","title":{"rendered":"Franchising 101"},"content":{"rendered":"<div class=\"gb-container gb-container-0ac0d8be\">\n<div class=\"gb-container gb-container-12c234df\">\n<div class=\"gb-grid-wrapper gb-grid-wrapper-f8002e18\">\n<div class=\"gb-grid-column gb-grid-column-d261e89e\"><div class=\"gb-container gb-container-d261e89e\">\n\n<h4 class=\"wp-block-heading\">Sections<\/h4>\n\n\n\n<ul style=\"font-size:14px\" class=\"wp-block-list tablecontents\">\n<li><a href=\"#one\">What Is a Franchise?<\/a><\/li>\n\n\n\n<li><a href=\"#two\">Franchise Roles<\/a><\/li>\n\n\n\n<li><a href=\"#three\">Types of Franchises<\/a><\/li>\n\n\n\n<li><a href=\"#four\">FDDs<\/a><\/li>\n\n\n\n<li><a href=\"#five\">Franchise Agreements<\/a><\/li>\n\n\n\n<li><a href=\"#six\">Franchise Fees<\/a><\/li>\n\n\n\n<li><a href=\"#seven\">Ongoing Costs<\/a><\/li>\n\n\n\n<li><a href=\"#eight\">Financing<\/a><\/li>\n\n\n\n<li><a href=\"#nine\">Franchise Brokers<\/a><\/li>\n\n\n\n<li><a href=\"#ten\">Business Plans<\/a><\/li>\n\n\n\n<li><a href=\"#eleven\">Marketing<\/a><\/li>\n\n\n\n<li><a href=\"#twelve\">Good Fit For You?<\/a><\/li>\n<\/ul>\n\n<\/div><\/div>\n\n<div class=\"gb-grid-column gb-grid-column-a90d02c3\"><div class=\"gb-container gb-container-a90d02c3\">\n\n<p>Are you new to franchising and curious about what this business model has to offer? Franchising is one of the best ways to step into entrepreneurship and allows you to operate under an established brand. With the right information, you can make informed, data-driven decisions and find a franchise opportunity that fits your goals. In this guide, I\u2019ll cover the basics of franchising, breaking down everything you need to know before you invest in a franchise.<\/p>\n\n\n<div class=\"gb-container gb-container-975bdadb gb-accordion\">\n<div class=\"gb-container gb-container-086abf67 gb-accordion__item gb-accordion__item-open\" id=\"one\" data-transition=\"slide\">\n<div class=\"gb-container gb-container-2a2b23f1 gb-accordion__toggle gb-block-is-current\" id=\"gb-accordion-toggle-2a2b23f1\" role=\"button\" tabindex=\"0\">\n\n<p class=\"gb-headline gb-headline-575f1634\"><span class=\"gb-icon\"><svg aria-hidden=\"true\" role=\"img\" height=\"1em\" width=\"1em\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path fill=\"currentColor\" d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span><span class=\"gb-headline-text\"><strong>What Is a Franchise?<\/strong><\/span><\/p>\n\n<\/div>\n\n<div id=\"gb-accordion-content-6d2ccb52\" class=\"gb-accordion__content\"><div class=\"gb-container gb-container-6d2ccb52\">\n\n<p>A franchise is a business arrangement where an established parent company (the franchisor) grants an individual or group (the franchisee) the right to operate under its brand name and business model. When you purchase a franchise, you gain access to the business\u2019s proprietary information and products. Franchisors also generally provide support to franchisees, helping set up the business and train staff.&nbsp;<\/p>\n\n\n\n<p>Since franchises are already established businesses, they generally come with less risk and a higher chance of success.<\/p>\n\n\n\n<p><em>Recommended Reading<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/franzy.com\/blog\/what-is-franchise\/\" data-type=\"post\" data-id=\"134\">What Is a Franchise?<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/franzy.com\/blog\/how-to-buy-franchise\/\" data-type=\"post\" data-id=\"132\">How to Buy a Franchise<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/franzy.com\/blog\/franchise-your-business\/\" data-type=\"post\" data-id=\"144\">How to Franchise Your Business<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/franzy.com\/blog\/franchise-glossary\/\" data-type=\"post\" data-id=\"1084\">Franchises Glossary of Common Terms<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/franzy.com\/blog\/history-of-franchising\/\" data-type=\"post\" data-id=\"1120\">History of Franchising<\/a><\/li>\n<\/ul>\n\n<\/div><\/div>\n<\/div>\n\n<div class=\"gb-container gb-container-fe3ef979 gb-accordion__item\" id=\"two\" data-transition=\"slide\">\n<div class=\"gb-container gb-container-6c4a0881 gb-accordion__toggle\" id=\"gb-accordion-toggle-6c4a0881\" role=\"button\" tabindex=\"0\">\n\n<p class=\"gb-headline gb-headline-e919da3f\"><span class=\"gb-icon\"><svg aria-hidden=\"true\" role=\"img\" height=\"1em\" width=\"1em\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path fill=\"currentColor\" d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span><span class=\"gb-headline-text\"><strong>Franchise Roles (Franchisee vs. Franchisor)<\/strong><\/span><\/p>\n\n<\/div>\n\n<div id=\"gb-accordion-content-81d03b11\" class=\"gb-accordion__content\"><div class=\"gb-container gb-container-81d03b11\">\n\n<p>Two terms you\u2019ll hear thrown around often when discussing franchising are \u201cfranchisor\u201d and \u201cfranchisee\u201d. These are the main roles in the franchise system. Franchisors are the owners of the parent company. They manage the overall company, manage the brand reputation, and work towards growing the franchise and expanding to new locations. Franchisees pay the franchisor to operate individual franchises. They are responsible for the daily operations of the franchise they own and must follow the franchisor&#8217;s guidelines and brand identity.<\/p>\n\n\n\n<p>The relationship between the franchisee and the franchisor is mutually beneficial. Franchisors can grow their brand without having to directly manage every location, and franchisees gain access to a proven business model with ongoing support and resources.<\/p>\n\n\n\n<p><em>Recommended Reading<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/franzy.com\/blog\/franchisee-vs-franchisor\/\" data-type=\"post\" data-id=\"152\">Franchisee vs. Franchisor<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/franzy.com\/blog\/franchise-partner\/\" data-type=\"post\" data-id=\"647\">What is a Franchise Partner?<\/a><\/li>\n<\/ul>\n\n<\/div><\/div>\n<\/div>\n\n<div class=\"gb-container gb-container-16226bb5 gb-accordion__item\" id=\"three\" data-transition=\"slide\">\n<div class=\"gb-container gb-container-557b89c9 gb-accordion__toggle\" id=\"gb-accordion-toggle-557b89c9\" role=\"button\" tabindex=\"0\">\n\n<p class=\"gb-headline gb-headline-def14a53\"><span class=\"gb-icon\"><svg aria-hidden=\"true\" role=\"img\" height=\"1em\" width=\"1em\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path fill=\"currentColor\" d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span><span class=\"gb-headline-text\"><strong>Types of Franchises<\/strong><\/span><\/p>\n\n<\/div>\n\n<div id=\"gb-accordion-content-cc6d4b83\" class=\"gb-accordion__content\"><div class=\"gb-container gb-container-cc6d4b83\">\n\n<p>There are several types of franchise business formats that cater to different situations. A single-unit franchise is the most common type, where franchisees operate a single location. <a href=\"https:\/\/franzy.com\/blog\/how-to-expand-your-franchise-empire\/\" data-type=\"link\" data-id=\"https:\/\/franzy.com\/blog\/how-to-expand-your-franchise-empire\/\">Multi-unit franchises<\/a> allow franchisees to own and manage several locations, often providing a path for greater income and influence. Master franchises grant individuals or entities the rights to develop an entire territory, often sub-franchising to others within that area.<\/p>\n\n\n\n<p>You can also choose between purchasing a new franchise or an already established franchise resale. With a resale, you\u2019ll typically be able to make a profit much faster since you won\u2019t have to start the new franchise from scratch.<\/p>\n\n\n\n<p><em>Recommended Reading<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/franzy.com\/blog\/common-franchising-industries\/\" data-type=\"post\" data-id=\"593\">Most Common Franchising Industries<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/franzy.com\/blog\/franchise-resale\/\" data-type=\"post\" data-id=\"150\">Franchise Resale: How to Buy an Existing Franchise Business<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/franzy.com\/blog\/turnkey-business\/\" data-type=\"post\" data-id=\"1123\">Turnkey Businesses<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/franzy.com\/blog\/business-format-franchise\/\" data-type=\"post\" data-id=\"1125\">Business Format Franchises<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/franzy.com\/blog\/product-distribution-franchise\/\" data-type=\"post\" data-id=\"1127\">Product Distribution Franchises<\/a><\/li>\n<\/ul>\n\n<\/div><\/div>\n<\/div>\n\n<div class=\"gb-container gb-container-af0669fe gb-accordion__item\" id=\"four\" data-transition=\"slide\">\n<div class=\"gb-container gb-container-d58d6e7f gb-accordion__toggle\" id=\"gb-accordion-toggle-d58d6e7f\" role=\"button\" tabindex=\"0\">\n\n<p class=\"gb-headline gb-headline-25222c49\"><span class=\"gb-icon\"><svg aria-hidden=\"true\" role=\"img\" height=\"1em\" width=\"1em\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path fill=\"currentColor\" d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span><span class=\"gb-headline-text\"><strong>Franchise Disclosure Documents<\/strong><\/span><\/p>\n\n<\/div>\n\n<div id=\"gb-accordion-content-c314a4e6\" class=\"gb-accordion__content\"><div class=\"gb-container gb-container-c314a4e6\">\n\n<p>The franchise disclosure document (FDD) is an official report that the franchisor will provide when prospective franchisees show interest in buying a franchise. The document has 23 items with information on the background of the parent company, its operational structure, franchise fees, marketing structure, and more. FDDs are an essential part of the discovery stage of buying a franchise. The FDD essentially contains all the information you\u2019ll need to make an informed decision on whether or not to purchase the franchise.&nbsp;<\/p>\n\n\n\n<p>It is important to note that franchisors are legally required to provide the FDD to potential franchisees at least 14 days before signing the franchise agreement.<\/p>\n\n\n\n<p><em>Recommended Reading<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/franzy.com\/blog\/fdd\/\" data-type=\"post\" data-id=\"136\">What Is An FDD?<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/franzy.com\/blog\/read-fdd\/\" data-type=\"post\" data-id=\"648\">How to Read an FDD<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/franzy.com\/blog\/ftc-franchise-rule\/\" data-type=\"post\" data-id=\"963\">What Is The FTC Franchise Rule?<\/a><\/li>\n<\/ul>\n\n<\/div><\/div>\n<\/div>\n\n<div class=\"gb-container gb-container-c9285c73 gb-accordion__item\" id=\"five\" data-transition=\"slide\">\n<div class=\"gb-container gb-container-a218ff0b gb-accordion__toggle\" id=\"gb-accordion-toggle-a218ff0b\" role=\"button\" tabindex=\"0\">\n\n<p class=\"gb-headline gb-headline-4d355773\"><span class=\"gb-icon\"><svg aria-hidden=\"true\" role=\"img\" height=\"1em\" width=\"1em\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path fill=\"currentColor\" d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span><span class=\"gb-headline-text\"><strong>Franchise Agreements<\/strong><\/span><\/p>\n\n<\/div>\n\n<div id=\"gb-accordion-content-1969ac42\" class=\"gb-accordion__content\"><div class=\"gb-container gb-container-1969ac42\">\n\n<p>A franchise agreement is a legally binding contract that lays out all of the terms and conditions of the franchise. This document contains all of the information about the agreement between the franchisor and the franchisee, such as the term limit, territory, fees, franchisor support, marketing requirements, termination process, and more. Signing the franchise agreement is one of the final steps in the franchise purchasing process, and once completed, the prospective franchisee will officially become a franchise owner. I highly recommend consulting a business attorney with experience in franchising to help you go through the franchise agreement with a fine-toothed comb and point out any red flags.<\/p>\n\n\n\n<p><em>Recommended Reading<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/franzy.com\/blog\/franchise-agreement\/\" data-type=\"post\" data-id=\"140\">What Is a Franchise Agreement?<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/franzy.com\/blog\/negotiate-franchise-agreement\/\" data-type=\"post\" data-id=\"957\">Can You Negotiate a Franchise Agreement?<\/a><\/li>\n<\/ul>\n\n<\/div><\/div>\n<\/div>\n\n<div class=\"gb-container gb-container-a491eb78 gb-accordion__item\" id=\"six\" data-transition=\"slide\">\n<div class=\"gb-container gb-container-5ec2a9c5 gb-accordion__toggle\" id=\"gb-accordion-toggle-5ec2a9c5\" role=\"button\" tabindex=\"0\">\n\n<p class=\"gb-headline gb-headline-bdfe800d\"><span class=\"gb-icon\"><svg aria-hidden=\"true\" role=\"img\" height=\"1em\" width=\"1em\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path fill=\"currentColor\" d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span><span class=\"gb-headline-text\"><strong>Initial Franchise Fees<\/strong><\/span><\/p>\n\n<\/div>\n\n<div id=\"gb-accordion-content-9e3a4f37\" class=\"gb-accordion__content\"><div class=\"gb-container gb-container-9e3a4f37\">\n\n<p>In order to become a franchise owner, you must pay an initial fee to the franchisor. This initial payment gives you access to the franchise\u2019s brand, trademarks, and proven business model. Franchise fees also typically cover some support from the franchisor when setting up, such as training staff, setting up supply chains, and initial advertising campaigns.<\/p>\n\n\n\n<p>Franchise fees range from around $20,000 to $50,000, though some may cost as little as $10,000, and high-cost businesses such as hotels can charge more than $75,000. The cost of the franchise fee varies depending on several factors, including the parent company\u2019s overall reputation and the terms of the franchise agreement.<\/p>\n\n\n\n<p><em>Recommended Reading<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/franzy.com\/blog\/franchise-fees\/\" data-type=\"post\" data-id=\"138\">What Is a Franchise Fee?<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/franzy.com\/blog\/average-franchise-fees\/\" data-type=\"post\" data-id=\"128\">Average Franchise Fees<\/a><\/li>\n<\/ul>\n\n<\/div><\/div>\n<\/div>\n\n<div class=\"gb-container gb-container-df6bc66f gb-accordion__item\" id=\"seven\" data-transition=\"slide\">\n<div class=\"gb-container gb-container-2bd35539 gb-accordion__toggle\" id=\"gb-accordion-toggle-2bd35539\" role=\"button\" tabindex=\"0\">\n\n<p class=\"gb-headline gb-headline-72ef8040\"><span class=\"gb-icon\"><svg aria-hidden=\"true\" role=\"img\" height=\"1em\" width=\"1em\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path fill=\"currentColor\" d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span><span class=\"gb-headline-text\"><strong>Franchise Royalties and Ongoing Costs<\/strong><\/span><\/p>\n\n<\/div>\n\n<div id=\"gb-accordion-content-c27b1005\" class=\"gb-accordion__content\"><div class=\"gb-container gb-container-c27b1005\">\n\n<p>Franchisors primarily profit from the franchise system through royalty payments. Parent companies charge franchisees a monthly royalty based on a percentage of the franchise&#8217;s gross sales. Royalties can range from as low as 4% to more than 15%. Franchise businesses with higher profit margins, such as accounting or financial services, tend to pay higher royalty fees than industries with lower profit margins. Franchisors may also charge ongoing marketing fees to cover regional and national advertisements. Depending on the company, these marketing fees range from 1% to 4%<\/p>\n\n\n\n<p>While royalties and marketing fees will take up a big chunk of your ongoing expenses, the costs do not stop there. Franchisees should also expect to pay for the rent on the franchise property, business insurance, payroll, and other ongoing operational costs.<\/p>\n\n\n\n<p><em>Recommended Reading<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/franzy.com\/blog\/franchise-royalties\/\" data-type=\"post\" data-id=\"441\">Understanding Franchise Royalties: How Much Will You Pay?<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/franzy.com\/blog\/average-franchise-royalty-fee\/\" data-type=\"post\" data-id=\"771\">Average Franchise Royalty Fees Analysis<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/franzy.com\/blog\/franchise-cost\/\" data-type=\"post\" data-id=\"591\">How Much Does It Cost to Buy a Franchise in 2025?<\/a><\/li>\n<\/ul>\n\n<\/div><\/div>\n<\/div>\n\n<div class=\"gb-container gb-container-97bfa301 gb-accordion__item\" id=\"eight\" data-transition=\"slide\">\n<div class=\"gb-container gb-container-759f9ff2 gb-accordion__toggle\" id=\"gb-accordion-toggle-759f9ff2\" role=\"button\" tabindex=\"0\">\n\n<p class=\"gb-headline gb-headline-76ecace8\"><span class=\"gb-icon\"><svg aria-hidden=\"true\" role=\"img\" height=\"1em\" width=\"1em\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path fill=\"currentColor\" d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span><span class=\"gb-headline-text\"><strong>Financing Franchises<\/strong><\/span><\/p>\n\n<\/div>\n\n<div id=\"gb-accordion-content-6f0374f8\" class=\"gb-accordion__content\"><div class=\"gb-container gb-container-6f0374f8\">\n\n<p>Purchasing a franchise is an expensive business venture. Depending on the type of franchise you buy, you\u2019ll have to pay between $100,000 to $300,000 to get started. While most entrepreneurs won\u2019t have this much cash lying around, the good news is that financing a franchise is relatively straightforward. Franchises are typically viewed by lenders as lower risk than other types of businesses. So, franchise owners have several options for securing funding, such as an SBA loan, in-house franchisor financing, home equity line of credit, and crowdfunding.<\/p>\n\n\n\n<p><em>Recommended Reading<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/franzy.com\/blog\/franchise-financing\/\" data-type=\"post\" data-id=\"146\">Franchise Financing Options<\/a><\/li>\n<\/ul>\n\n<\/div><\/div>\n<\/div>\n\n<div class=\"gb-container gb-container-cc636cae gb-accordion__item\" id=\"nine\" data-transition=\"slide\">\n<div class=\"gb-container gb-container-d391c503 gb-accordion__toggle\" id=\"gb-accordion-toggle-d391c503\" role=\"button\" tabindex=\"0\">\n\n<p class=\"gb-headline gb-headline-c73694da\"><span class=\"gb-icon\"><svg aria-hidden=\"true\" role=\"img\" height=\"1em\" width=\"1em\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path fill=\"currentColor\" d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span><span class=\"gb-headline-text\"><strong>The Role of Franchise Brokers<\/strong><\/span><\/p>\n\n<\/div>\n\n<div id=\"gb-accordion-content-cb3270e5\" class=\"gb-accordion__content\"><div class=\"gb-container gb-container-cb3270e5\">\n\n<p>A franchise broker is a service that helps connect franchisors with prospective franchisees.&nbsp; Brokers are separate entities that do not work for the parent company. Instead, franchise brokers work with potential investors to find the best franchise opportunities.<\/p>\n\n\n\n<p>Brokers earn a commission from parent companies only when the franchise agreement has been signed and the initial franchise fee has been paid. They provide guidance to franchisees and assist in choosing the best parent company for the investor\u2019s goals and budget. Since franchise brokers typically have a large portfolio of franchisors they work with, hiring a broker streamlines the process of purchasing a franchise.<\/p>\n\n\n\n<p><em>Recommended Reading<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/franzy.com\/blog\/franchise-broker\/\" data-type=\"post\" data-id=\"646\">What is a Franchise Broker?<\/a><\/li>\n<\/ul>\n\n<\/div><\/div>\n<\/div>\n\n<div class=\"gb-container gb-container-3cd241f1 gb-accordion__item\" id=\"ten\" data-transition=\"slide\">\n<div class=\"gb-container gb-container-19b678e5 gb-accordion__toggle\" id=\"gb-accordion-toggle-19b678e5\" role=\"button\" tabindex=\"0\">\n\n<p class=\"gb-headline gb-headline-401caefb\"><span class=\"gb-icon\"><svg aria-hidden=\"true\" role=\"img\" height=\"1em\" width=\"1em\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path fill=\"currentColor\" d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span><span class=\"gb-headline-text\"><strong>Creating a Franchise Business Plan<\/strong><\/span><\/p>\n\n<\/div>\n\n<div id=\"gb-accordion-content-ca0752de\" class=\"gb-accordion__content\"><div class=\"gb-container gb-container-ca0752de\">\n\n<p>A franchise business plan is a blueprint for success in purchasing a franchise. A business plan contains detailed information about how the franchise will operate, background information on the parent company, how much it will cost to get started, and your plan for marketing to customers in your local community. Franchise business plans also contain an in-depth competitive analysis and financial predictions for the franchise&#8217;s expected revenue and expenses.<\/p>\n\n\n\n<p>Creating an effective business plan can make a huge difference for a new franchisee. Not only will it help you secure funding, but the franchisor will also be much more eager to partner with you if you have a well-crafted business plan.<\/p>\n\n\n\n<p><em>Recommended Reading<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/franzy.com\/blog\/franchise-business-plan\/\" data-type=\"post\" data-id=\"411\">How to Create a Franchise Business Plan (+ Template)<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/franzy.com\/blog\/franchise-swot-analysis\/\" data-type=\"post\" data-id=\"772\">How to Do a Franchise SWOT Analysis<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/franzy.com\/blog\/franchise-territory-analysis\/\" data-type=\"post\" data-id=\"809\">How to Do a Franchise Territory Analysis<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/franzy.com\/blog\/choose-franchise-location\/\" data-type=\"post\" data-id=\"1130\">How to Choose a Good Franchise Location<\/a><\/li>\n<\/ul>\n\n<\/div><\/div>\n<\/div>\n\n<div class=\"gb-container gb-container-b7da1397 gb-accordion__item\" id=\"eleven\" data-transition=\"slide\">\n<div class=\"gb-container gb-container-d1fc33cf gb-accordion__toggle\" id=\"gb-accordion-toggle-d1fc33cf\" role=\"button\" tabindex=\"0\">\n\n<p class=\"gb-headline gb-headline-27821638\"><span class=\"gb-icon\"><svg aria-hidden=\"true\" role=\"img\" height=\"1em\" width=\"1em\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path fill=\"currentColor\" d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span><span class=\"gb-headline-text\"><strong>Franchise Marketing<\/strong><\/span><\/p>\n\n<\/div>\n\n<div id=\"gb-accordion-content-9eeafdc7\" class=\"gb-accordion__content\"><div class=\"gb-container gb-container-9eeafdc7\">\n\n<p>Without a solid marketing plan, it will be difficult to get your new franchise off the ground. Franchise marketing is a collaborative effort between the parent company and franchisees. The franchisor typically manages big-picture marketing campaigns, such as national TV and radio advertisements, major event sponsorships, and other efforts to build brand awareness on a large scale. On the other hand, franchisees focus on local marketing efforts, such as partnering with nearby businesses, sponsoring smaller events in the community, or localized ads on social media.<\/p>\n\n\n\n<p>Franchisees pay a marketing fee, which supports the franchisor\u2019s marketing campaigns. These campaigns help build brand recognition and ultimately benefit all franchise locations.<\/p>\n\n\n\n<p><em>Recommended Reading<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/franzy.com\/blog\/franchise-marketing-plan\/\" data-type=\"post\" data-id=\"601\">How to Create a Franchise Marketing Plan (+ Free Template)<\/a><\/li>\n<\/ul>\n\n<\/div><\/div>\n<\/div>\n\n<div class=\"gb-container gb-container-423d08b3 gb-accordion__item\" id=\"twelve\" data-transition=\"slide\">\n<div class=\"gb-container gb-container-7cad6c2d gb-accordion__toggle\" id=\"gb-accordion-toggle-7cad6c2d\" role=\"button\" tabindex=\"0\">\n\n<p class=\"gb-headline gb-headline-a5e0378d\"><span class=\"gb-icon\"><svg aria-hidden=\"true\" role=\"img\" height=\"1em\" width=\"1em\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path fill=\"currentColor\" d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span><span class=\"gb-headline-text\"><strong>Is a Franchise The Right Fit For You?<\/strong><\/span><\/p>\n\n<\/div>\n\n<div id=\"gb-accordion-content-8725a008\" class=\"gb-accordion__content\"><div class=\"gb-container gb-container-8725a008\">\n\n<p>Purchasing a franchise is a major undertaking that takes a lot of effort and dedication. If you are considering buying a franchise but aren\u2019t sure if it is the right fit, weighing the pros and cons of franchise ownership is a good idea.<\/p>\n\n\n\n<p>Franchisees enjoy immediate brand recognition and generally have a higher chance of success since franchises are less risky than other business models. Franchise owners also tend to make a profit quickly, with many seeing returns within the first year. However, franchises come with exceptionally high start-up costs, and you\u2019ll have to pay several ongoing fees to the franchisor. Franchisees also have much less control over the overall direction of the brand, as they are only responsible for their specific location.<\/p>\n\n\n\n<p>At the end of the day, a franchise is an excellent option for some entrepreneurs, while for others, it may be better to start a business from scratch.<\/p>\n\n\n\n<p><em>Recommended Reading<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/franzy.com\/blog\/franchise-worth-it\/\" data-type=\"post\" data-id=\"142\">Is Owning a Franchise Worth It?<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/franzy.com\/blog\/common-mistakes-buying-franchise\/\" data-type=\"post\" data-id=\"818\">Common Mistakes When Buying a Franchise<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/franzy.com\/blog\/franchise-owner-tips\/\" data-type=\"post\" data-id=\"959\">Tips to Be a Successful Franchise Owner<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/franzy.com\/blog\/franchise-owner-ready\/\" data-type=\"post\" data-id=\"961\">How to Know If You\u2019re Ready to Become a Franchise Owner<\/a><\/li>\n<\/ul>\n\n<\/div><\/div>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n<div class=\"gb-grid-column gb-grid-column-36c020e7\"><div class=\"gb-container gb-container-36c020e7\">\n<div class=\"gb-container gb-container-9aef2bcc\">\n\n<h4 class=\"wp-block-heading\">The Latest<\/h4>\n\n\n\n<div class=\"gb-grid-wrapper gb-grid-wrapper-2abfbe7b gb-query-loop-wrapper\">\n<div class=\"gb-grid-column gb-grid-column-7fef4355 gb-query-loop-item post-1130 post type-post status-publish format-standard has-post-thumbnail hentry category-franchises-101\"><div class=\"gb-container gb-container-7fef4355\">\n<h2 class=\"gb-headline gb-headline-5b4ad097 gb-headline-text\"><a href=\"https:\/\/franzy.com\/blog\/choose-franchise-location\/\">How to Choose a Good Franchise Location<\/a><\/h2>\n\n<p class=\"gb-headline gb-headline-711af212 gb-headline-text\"><time class=\"entry-date published\" datetime=\"2025-04-03T12:13:53-05:00\">April 3, 2025<\/time><\/p>\n<\/div><\/div>\n\n<div class=\"gb-grid-column gb-grid-column-7fef4355 gb-query-loop-item post-1127 post type-post status-publish format-standard has-post-thumbnail hentry category-franchises-101\"><div class=\"gb-container gb-container-7fef4355\">\n<h2 class=\"gb-headline gb-headline-5b4ad097 gb-headline-text\"><a href=\"https:\/\/franzy.com\/blog\/product-distribution-franchise\/\">What Is a Product Distribution Franchise?<\/a><\/h2>\n\n<p class=\"gb-headline gb-headline-711af212 gb-headline-text\"><time class=\"entry-date published\" datetime=\"2025-04-01T08:57:47-05:00\">April 1, 2025<\/time><\/p>\n<\/div><\/div>\n\n<div class=\"gb-grid-column gb-grid-column-7fef4355 gb-query-loop-item post-1125 post type-post status-publish format-standard has-post-thumbnail hentry category-franchises-101\"><div class=\"gb-container gb-container-7fef4355\">\n<h2 class=\"gb-headline gb-headline-5b4ad097 gb-headline-text\"><a href=\"https:\/\/franzy.com\/blog\/business-format-franchise\/\">What Is a Business Format Franchise? Everything You Should Know<\/a><\/h2>\n\n<p class=\"gb-headline gb-headline-711af212 gb-headline-text\"><time class=\"entry-date published\" datetime=\"2025-03-31T08:56:52-05:00\">March 31, 2025<\/time><\/p>\n<\/div><\/div>\n\n<div class=\"gb-grid-column gb-grid-column-7fef4355 gb-query-loop-item post-1123 post type-post status-publish format-standard has-post-thumbnail hentry category-franchises-101\"><div class=\"gb-container gb-container-7fef4355\">\n<h2 class=\"gb-headline gb-headline-5b4ad097 gb-headline-text\"><a href=\"https:\/\/franzy.com\/blog\/turnkey-business\/\">What Is a Turnkey Business?<\/a><\/h2>\n\n<p class=\"gb-headline gb-headline-711af212 gb-headline-text\"><time class=\"entry-date published\" datetime=\"2025-03-28T08:55:57-05:00\">March 28, 2025<\/time><\/p>\n<\/div><\/div>\n\n<div class=\"gb-grid-column gb-grid-column-7fef4355 gb-query-loop-item post-1120 post type-post status-publish format-standard has-post-thumbnail hentry category-franchises-101\"><div class=\"gb-container gb-container-7fef4355\">\n<h2 class=\"gb-headline gb-headline-5b4ad097 gb-headline-text\"><a href=\"https:\/\/franzy.com\/blog\/history-of-franchising\/\">The History of Franchising and How It Has Become the Business Model It Is Today<\/a><\/h2>\n\n<p class=\"gb-headline gb-headline-711af212 gb-headline-text\"><time class=\"entry-date published\" datetime=\"2025-03-26T08:55:09-05:00\">March 26, 2025<\/time><\/p>\n<\/div><\/div>\n<\/div>\n\n<\/div>\n\n<div class=\"gb-container gb-container-47a19ad9\">\n<div class=\"gb-container gb-container-9eef7827\">\n\n<h6 class=\"wp-block-heading has-text-align-center\">Schedule a Free Consultation<\/h6>\n\n\n\n<p class=\"has-text-align-center has-small-font-size\">We&#8217;ll talk through your goals, answer questions, fill out your Franzy profile, and help you find the perfect franchise for you.<\/p>\n\n\n\n<div class=\"wp-block-buttons franzybutton is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-16018d1d wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"#\">Schedule a Call<\/a><\/div>\n<\/div>\n\n<\/div>\n<\/div>\n<\/div><\/div>\n<\/div>\n<\/div>\n<\/div>\n\n<div class=\"gb-container gb-container-616c25b7\">\n<div class=\"gb-container gb-container-2df010df\">\n\n<h4 class=\"wp-block-heading has-text-align-center\">Download the First-Time Franchisee Guide<\/h4>\n\n\n\n<p class=\"has-text-align-center\">A clear, step-by-step breakdown to help you decide if franchising is right for you\u2014and how to get started.<\/p>\n\n\n\n\t\t\t<div\n\t\t\tclass=\"hs-form-frame\"\n\t\t\tdata-region=\"na1\"\n\t\t\tdata-form-id=\"cb9766b3-df11-4429-a883-41a2ea2ac07c\"\n\t\t\tdata-portal-id=\"47654414\"\n\t\t\t >\n\t\t\t<\/div>\n\t\t\t\n\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Your starter guide to the franchising business \u2013 basics on how franchising works, if it\u2019s a good fit for you, and how to get started.<\/p>\n","protected":false},"author":5,"featured_media":317,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[5],"tags":[],"class_list":["post-335","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-franchises-101","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-50"],"_links":{"self":[{"href":"https:\/\/franzy.com\/blog\/wp-json\/wp\/v2\/posts\/335","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/franzy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/franzy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/franzy.com\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/franzy.com\/blog\/wp-json\/wp\/v2\/comments?post=335"}],"version-history":[{"count":49,"href":"https:\/\/franzy.com\/blog\/wp-json\/wp\/v2\/posts\/335\/revisions"}],"predecessor-version":[{"id":1626,"href":"https:\/\/franzy.com\/blog\/wp-json\/wp\/v2\/posts\/335\/revisions\/1626"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/franzy.com\/blog\/wp-json\/wp\/v2\/media\/317"}],"wp:attachment":[{"href":"https:\/\/franzy.com\/blog\/wp-json\/wp\/v2\/media?parent=335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/franzy.com\/blog\/wp-json\/wp\/v2\/categories?post=335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/franzy.com\/blog\/wp-json\/wp\/v2\/tags?post=335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}