At Franchise FastLane, we’re committed to helping entrepreneurial-minded individuals discover the benefits of franchise ownership among the 20+ brands we represent in our portfolio of opportunities. Since many of our associates are also franchise owners themselves, our team can offer a unique perspective on the power of entrepreneurship and what it can do for you and your loved ones.
But one thing to note about Franchise FastLane is that our advice and consultation begins by providing an education of the basics of franchising in general. As a rule, we try not to presume that our clients understand all there is to know about the benefits and advantages franchising offers. Sometimes, we intentionally begin with the very supposition of what franchising is. And what it isn’t. Please continue reading for an explanation – in layman’s terms – of what to expect if you’d like to consider business ownership through franchising.
An Industry on the Move…
These days, it’s entirely possible that you’re hearing more and more about franchising. Numerous studies, surveys, and reports indicate it’s an industry that’s growing in popularity across multiple demographic groups. But if you ask your average person on the street to define franchising, it’s highly possible you’re going to hear about McDonald’s and Subway. That, in and of itself, is one of the more pervasive myths about franchising – that’s it’s all about fast food. Or, as we like to call it, quick service. Is franchising gaining in popularity? According to some of the latest available data from Statista, absolutely. As of 2022, it's estimated that there were nearly 800,000 franchise establishments in the U.S., employing some 8.5 million workers, and driving revenue upwards of $827 billion. With numbers like these reaching new heights, franchising is an industry that’s clearly on the move.
So, how do we define franchising and the role of franchisor and franchisee alike?
What Franchising Is…
According to the International Franchise Association (IFA), the industry’s largest and most representative trade organization, a franchise is defined as:
A method of offering and distributing a product or service that involves a franchisor – who owns and establishes the brand’s trademarks and business model, and a franchisee – of whom pays an initial franchise fee and royalties for the right to do business under the franchisor's name and likeness. Simply put, a franchisor licenses its brand to individual owner/operators.
By nature, franchising is a contractual relationship, meaning that an agreement regulated by the FTC stipulates that the franchiser grants a franchisee permission to use the company’s trademarks. As a result, the franchisee pays the franchisor to operate as an individual branch of the company, while monitoring and supporting the franchisee’s activities on their behalf.
What Franchising Isn’t…
Franchising is not a mere licensing agreement, whereby one party legally grants another party to use its trademark and legal rights. Licensing agreements allow creative freedom as it pertains to production, design, distribution, or marketing – while franchising relies upon a proven business model, comprehensive training, and ongoing support. Franchising also isn’t your typical corporate expansion, whereby ownership is retained by company employees. Rather, franchises outsource ownership to third party franchisees.
For Franchise FastLane and the clients we serve, our relationship involves learning more about our brands and how entrepreneurial-minded individuals can establish business ownership of their own. Thanks to the comprehensive training and close-knit ongoing support, prior industry experience is not required to pursue any of the business opportunities in our portfolio.
Ready to Explore Franchise Ownership? Let’s Connect!
If you’d like to explore what’s possible through franchise ownership, we invite you to reach out to Franchise FastLane to learn about the 20+ brands in our portfolio of opportunities. Our staff includes dozens of qualified franchise experts who can help you discover a path to a whole new way of life – one where you’re in control of your own destiny, lifestyle, and income-generating capability. Once you enlist our assistance, we can help you turn your business ownership dreams into reality.