In short a franchise is a business that operates under agreement to run the business using an agreed upon system, process, products, branding etc. which the franchisor has given the franchisee the rights to use.  Chic-fil-A or Primrose Schools as an example are franchises.  A franchisee is the individual owner that has been give the authority to use the franchisor’s concept. Let’s take a look at franchising and some of its parts, what is it, advantages and disadvantages, fees and costs, selection, and further investigation.

What Is Franchising?

To franchise a business, the company allows buyers to license the name, buy the supplies and tools for wholesale prices, and to market the business consistently per the franchise documents. A franchise can be a bricks-and-mortar business, an online business, or even a particular process of doing business such as some types of marketing solutions. Today just about every area of the market and industry have franchise businesses in them.

Advantages of Franchising

The advantage of franchising is that if you do your due diligence, research, and choose well according to what is the best fit for you, the odds of success are greatly increased because your business systems have already been established, tested and proven. All you have to do is take the training and follow the recipe.  When you have questions or need assistance, you’ll have people to rely upon for guidance and support. Some studies show that a legitimate franchise has a much higher success rate than non-franchise businesses. Being able to talk to others running the same system coming up with best practices and reducing mistakes, brand identity and purchasing power are a few of the reasons franchise business’s outperform non-franchise businesses.

Disadvantages of Franchising

While you’re an independent business, you’re still working under an agreement that allows you to use the franchisor’s proven system. You’ve entered a legal agreement with them to run the business the way that has been proven to work. Also, your business is connected to the other franchises in the organization. So, if one person does not work the system or is otherwise imprudent, it could affect business.  Therefore, the validation process is an important step when researching your potential fit.

Franchising Fees and Royalties

Yes, there are costs which are used to support the franchisee during initial training, marketing, ongoing guidance and coaching among other things. But then you would have had most of these cost (and possibly at a higher rate) if you were to start from scratch. Plus, you would not have the expertise and experience that franchising offers to help avoid costly missteps. The important aspect of these fees is to “run the numbers” to make sure you understand them and are comfortable with them.

Selecting the Right Franchise for You

To select the right franchise for you, it’s important to work with a certified franchise consultant from Rockwell Birch who will help you understand your skillsets, interests, and work with you on your future vision before making your choice. You may not need all the experience of a particular business to invest in the right opportunity, heck that is why franchising is so beneficial to so many. What you do need the ability to follow the systems and process of the franchise while at the same time putting your stamp and personal touches on your new business. When choosing, be sure that you can put forth the effort to run the particular concept you are choosing. For example, if you’re interested in health you might want to select a restaurant franchise that concentrates on healthy meals or a health clinic or a yoga and physical training business.  There are so many concepts that fit each individuals’ goals and passions, let’s find the right one for you.


There are a lot of businesses that you go to regularly that are franchises. For example, a super well-known franchise is McDonald’s. There are also some lesser-known franchises such as Real Property Management, House Doctors, and many others. You may be surprised that a lot, if not most, of the businesses available for investment and you go to daily are franchises.  There are over 4000 different franchise concepts/brands in the United States that are represent almost every industry and business concept from services to professional sports teams – from retail to marketing firms.  There really is the right business opportunity for every person that is looking to get into business for themselves.

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