franchise system
Branded business replication
A franchise system is a business model where an owner (the franchisor) licenses its brand, methods, and products to independent operators (franchisees) who pay fees and royalties to use them.
The franchisor provides the playbook—training, supplies, marketing—while franchisees run individual locations: McDonald's operates through a franchise system with thousands of independent owners.
The arrangement lets brands expand rapidly without owning every outlet.
- training programsOrganized skill-building curricula
- brand identityCompany's distinctive public face
- intellectual propertyLegal rights over inventions
- licensingGranting official permission
- revenue sharingDistributing income among stakeholders
advertising campaigns · profit margins · supply chain management · compliance · royalty fees · quality control · promotional materials · operational costs · startup costs · market research · grand opening · performance metrics · public relations · reputation management · community engagement
franchise systemsole proprietorship
Unincorporated individual-owned business
cottage industry · family business · private ownership · startup · cooperative
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