Food franchise meaning

What is franchise and franchise? A restaurant franchise is a brand which an investor , or franchisee , has bought the right to use. In return, the company granting the license, or franchisor, offers support, marketing and a proven restaurant concept. A manufacturing franchise is licensed to produce goods and services using the franchisor’s brand name.

Food and beverage companies often operate in this way (selling syrup concentrate to a bottling company, who then sells it on after mixing, for example), as do some wholesalers.

Who offers franchising opportunities? A franchisee is a small-business owner who operates a franchise. Many fast-food companies operate franchises.

Entering into a franchise agreement means that you – the franchisee – purchase the right to sell goods or services using the franchisor ’s trademark or trade name for a specified period of time. The franchisor is the original or existing business that sells the right to use its name and idea. The word franchise is of Anglo-French derivation—from franc, meaning free—and is used both as a noun and as a (transitive) verb.

For the franchisor, use of a franchise system is an alternative business growth strategy, compared to expansion through corporate owned outlets or chain stores.

Manufacturing franchise. The major alternative to the continued expansion of the retail chain is the franchise concept in which an individual entrepreneur operates a business in conjunction with a network of suppliers. Once a franchise has been purchase the franchisee must comply with strict guidelines and rules regarding the business in order to maintain brand consistency. This concept is called franchising.

One form of franchise is a right granted by the Crown or, to use the classic definition , “a royal privilege or branch of the royal prerogative subsisting in the hands of a. But these rewards come with risks. The franchise model offers unique benefits for both the franchisee and the franchisor. Prepare to wear many hats in your role as a franchisee. In some cases, this means also having the right to use the franchisor’s established name and branding, as well as their already-tested business model.

Many of the best-known franchises operate in the food , retail and service industries. Arrangement where one party (the franchiser) grants another party (the franchisee) the right to use its trademark or trade-name as well as certain business systems and processes, to produce and market a good or service according to certain specifications. A recently arrived segment in the food industry is franchises offering alternatives to traditional flower and candy gifts. For some franchises , this is a flat, one-size-fits-all.

It can be a much quicker start up than a traditional business. You get the benefit of the franchisor’s market share, brand awareness, advertising, business management and know how – plus ongoing support from the franchisor. The first is to build a strong brand and the second is to recruit customers.

Building a strong brand requires that the franchisor and all franchisees send a consistent message to prospective and current customers. Franchise system advertising efforts have two objectives. For this reason, franchisors in well-designed systems set strict rules for the use of their trademarks and control the use and creation of marketing and advertising materials. To get to that point, you still need to do your due diligence to increase your chances of making it work.

Take a look at the following top fast food franchises to consider. Being awarded with the accolade of being the top U. Wendy’s offers lucrative opportunities for investors with an interest in fast food to run their own burger restaurant.