the.com/franchise systems
you bring the money and the labor, they bring the logo and the rulebook.
means a franchise system lets someone license their brand, playbook, and supply chain to independent owners who run the local outlet and share the profits back up the chain.
from the word comes from old french franchir, to free from servitude, once meaning a royal grant of special privilege. singer sewing machines used it commercially in the 1850s, but ray kroc turned it into a religion when he scaled mcdonald's through franchisees starting in 1955.
royalty cutfranchisors typically take 4-8% of gross revenue, always
failure ratefranchise businesses fail less often than independent startups
real estate trickmcdonald's makes more from rent than burgers
global reachsubway once had more locations than mcdonald's worldwide
for instance
mcdonald's — 38000+ locations, franchisor owns the underlying real estate
anytime fitness — 5000+ gyms, grew via low-overhead 24-hour franchise model
curves — exploded to 10000 locations by 2007 then collapsed just as fast