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Introduction to Franchising

Franchising Basics

Franchising as we know it today originated with the Singer Sewing Centre developed by Isaac Singer in 1858. After he had invented the sewing machine, Singer encountered two problems when he took it to the market. The first was that customers had to be taught how to use the new invention before they would buy it...

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Definition of Franchising

There are several terms used in franchising that require explanation. Some, including the word "franchising" itself, are in everyday use but are not always used correctly...

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The Benefits of Franchising

Buying a franchise is an option that many people looking to manage their own small business should consider, as there are a number of advantages to joining this industry. The main benefit if you become a franchisee is that your business will already have in place the knowledge and experience of the franchiser that has enabled it to expand, which provides each franchise with a solid business platform.

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What Makes a Good Franchise

Selecting a franchise to work for is a tough decision, but doing your homework and looking into what the franchise has to offer will help to separate the good ones from the bad.

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Franchises vs. Business Opportunities

Business opportunities (biz opps) and franchises are two ways to start a business without having to start from scratch, offering prospective business owners a proven system to operate with. While they are similar, and have many overlapping features, they have distinct differences that should be acknowledged before an entrepreneur signs on the dotted line to proceed with either.

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Understanding The Steps That Come Before Franchise Opening

Opening a franchise is a detailed and lengthy process. If you are considering a franchise opportunity, we suggest you read this article explaining every step of the franchise pre-opening process. This article will ensure that you’re prepared when you open your franchise business.

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Part-Time Franchising

Part Time Franchising is an excellent business opportunity for individuals wanting to balance a work life ethic with their social life. It has the ability to offer individuals the opportunity to be their own boss, and also to incorporate family, social and civic obligations.

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Ethical Franchising

To have a good reputation with franchisees and in the franchising industry, it is important that franchisers have an ethical framework to operate by.

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Multi-Unit Franchising

One of the biggest changes in business format franchising from when it began to take off in the 1950s and 60s is the development of multi-unit franchises. This is where a franchiser will award the right to a franchisee to operate more than one outlet within the defined location area in the franchise agreement.

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Multi-Unit Franchises on the Rise

The IFA Educational Foundation, in cooperation with IFA and Indiana University Southeast, has published a study documenting the growing incidence of multi-unit franchisees. The survey results are based on two postal surveys of 830 IFA member companies, with 145 franchise systems replying to the survey, for a response rate of 17.9 percent.

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Master Franchising - Benefits and Responsibilities

Master franchises give people with significant funds to start a business a degree of power, as they will be in charge of the other franchises that are established in a specified country or region...

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The Franchise Disclosure Document Item-By-Item Guide

The following article breaks down every element of the Financial Disclosure Document (FDD). This document is a crucial piece of literature if you’re about to invest in a franchise. You’ll find every item of the FDD thoroughly explained here.

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Franchising in Europe

Should you consider expanding your franchise into Europe? As a franchisor, achieving success is hard work and expanding your franchise offering outside of the US should not be entered into without first considering whether or not you and your franchise are ready. Read our article examining some of the most active franchise markets in Europe, and the differences in franchise regulation, business practices and market differences.

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Timeline - Opening A Restaurant Franchise

Purchasing a food franchise is an in-depth process. The timeline below outlines the many steps that you will encounter as you venture to open your own food franchise.

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FDD Guide

The Franchise Disclosure Document (FDD) is one of the most important documents you'll encounter as you launch your franchise. Franchise Direct's FDD guide explains every aspect of this essential form. Read Franchise Direct's FDD guide to learn more about the process of starting a franchise.

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FDD Guide (Part 1)

A FDD is a document that outlines the history of the business, all the franchisees in a franchise’s system, turnover rates, terminations, fees, rules, restrictions, and numerous other things pertaining to that particular franchise...

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FDD Guide (Part 2)

What does my investment cover? What are my obligations and restrictions? What happens when the franchise term ends? What will I have to sign? Find the answers here ...

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FDD Guide Samples (Part 1)

FDD items 1 - 4.

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FDD Guide Samples (Part 2)

ITEM 5: INITIAL FEES,ITEM 6: OTHER FEES, ITEM 7: ESTIMATED INITIAL INVESTMENT

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FDD Guide Samples (Part 3)

ITEM 8: RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES, Item 9: Franchisee's Obligations, ITEM 10: FINANCING, ITEM 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING, Item 12: TERRITORY.

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FDD Guide Samples (Part 4)

Item 13: Trademarks,ITEM 14: PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION,Item 15: Obligation to Participate in the Actual Operation of the Franchise Business,Item 16: RESTRICTIONS ON WHAT THE FRANCHISEE MAY SEEL

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FDD Guide Samples (Part 5)

Item 17: RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION, Item 18: PUBLIC FIGURES, Item 19: FINANCIAL PERFORMANCE REPRESENTATIONS, Item 20: OUTLETS AND FRANCHISEE INFORMATION, ITEM 21: FINANCIAL STATEMENTS, Item 22: CONTRACTS, Item 23: RECEIPTS

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