Many small businesses in the United States are franchises. Franchises appear in many industries like real estate, fast food, hotels and retail. Some popular franchise brands include McDonald's, Marriott Hotels and Century 21.
According to the International Franchise Association, there are two types of franchises. These are product distribution and the business format.
Product distribution franchises get use of a franchisor's trademark and logo to sell products. Most franchises are business format, which provides products and methods to run the business.
Franchisors offer financial, marketing, and training support to franchisees to help them grow their business in exchange for fees for using the franchisor’s trade name and business model.
Franchises help a business owners be in business for themselves without starting a business from the ground up.
Purchasing a franchise can be expensive, consider the pros and cons of franchise ownership before making a purchase.