There are national chains like Kroger grocery stores and Walgreens drug stores but they aren’t franchises. Most franchises like Subway and Ace Hardware Stores are national in scope. So what’s the difference between a national chain that is a franchise and one that isn’t?
Look at who owns the business.
Can a person wholly own a Kroger or Walgreens? No. A person can buy shares of their stock and be part owner.
Can a person completely own a Subway or Ace Hardware Store? Yes.
How does someone get to own a franchise?
The person buys a LICENSE to use the branding, trademarks and business format of a specific franchise.
There is a one time payment for the license called the FRANCHISE FEE.
The key is to be AWARDED a franchise by the franchisor. A geographic area or TERRITORY is typically included.
For the past 20 years, I’ve helped people select and vet franchises that are a great fit for them.
If you long for an EXIT STRATEGY from your job, need a FINANCIAL BRIDGE to or through retirement, or wish to DIVERSIFY YOUR ASSETS and create ANOTHER INCOME STREAM, let’s set up a time to talk.
To be informed about what a franchised business involves, check out this Franchise Alert.
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