In this week of 10th Grade Business for Ron Paul Curriculum I have been learning about franchise. According to Franchise.org “A franchise (or franchising) is a method of distributing products or services involving a franchisor, who establishes the brand’s trademark or trade name and a business system, and a franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor’s name and system.” This means that you pay a fee of a business to run that part of the business. Some examples are Taco Bell, Chick-fil-a, and Aldi.
When you go independent you do your own thing. There are many things that a franchise can help you with that going independent can not. For one if you go independent your business may not be successful while with a franchise you know you will get money. There are many other things that a franchise can help you with that going independent can not.
According to Franchise.org: “There are two different types of franchising relationships. Business Format Franchising is the type most identifiable. In a business format franchise, the franchisor provides to the franchisee not just its trade name, products and services, but an entire system for operating the business.” So if you are thinking about starting a business then maybe try franchising first, but if you already have you probably know how to keep a business running.