Guide

Franchising 101

The whole model in plain English, no jargon.

A franchise is a licensed copy of a proven business. The company that owns the brand and system is the franchisor; you, the buyer, are the franchisee. You pay to use their name, playbook, and support, and you run a unit by their rules.

What you pay

An upfront franchise fee, the total cost to open (the real number, called total initial investment), and ongoing royalty and advertising fees, usually a percentage of revenue.

The FDD

Before you buy, the franchisor must give you a Franchise Disclosure Document, a legally required deep dive into fees, obligations, litigation, and unit economics. You can browse thousands of them in the FDD database.

What you get

A brand customers already know, training, a tested operating system, supply chains, and a support team. In short, you trade some freedom for a head start.