• Adventure
  • Auto
  • Culture
  • Entertainment
  • Home & Garden
  • Money
  • Science
  • Tech
  • Video
  • Shows
  • Blogs
  • Quizzes
  • Games
  • Random Article
  • Business
  • Economics
  • Jobs
  • Personal Finance
  • Home > 
  • Money > 
  • Business > 
  • Starting a Business

by Lee Ann Obringer

Print
Cite This!
Close 
Please copy/paste the following text to properly cite this HowStuffWorks article:

Obringer, Lee Ann.  "How Franchising Works"  06 November 2001.  HowStuffWorks.com. <http://money.howstuffworks.com/franchising.htm>  11 February 2012.
Cite
Feedback

What's the real story?

Stuff They Don't Want You to Know Videos »
Stuff They Don't Want You to Know Videos »
Inside this Article
  1. Introduction to How Franchising Works
  2. What is Franchising?
  3. Advantages of Franchising
  1. The Rules: Fees
  2. The Rules: Restrictive Covenants
  3. The Rules: Trade Secrets
  4. See more »
    1. Selecting the Right Franchise
    2. The Franchising Process
    3. Creating a Plan
    4. The Legal Aspects
    5. At the End of the Road
    6. Lots More Information
    7. See all Starting a Business articles

Lots More Information

Related HowStuffWorks Articles

  • How Banks Work
  • How Affiliate Programs Work
  • How Business Plans Work
  • How Patents Work
  • How Income Taxes Work
  • How Pawnshops Work
  • How Stocks and the Stock Market Work
  • What is a "trade secret", and how is it different from a patent or copyright?

More Great Links

  • The American Franchisee Association
  • Franchising.com: A World of Franchising Opportunity
  • Franchising Update
  • blackenterprise.com: Franchise Center
  • Franchise Works
Previous Page

Money Makes the World Go 'Round

10 Things You Should Buy in Bulk
10 Things You Should Buy in Bulk
Fact or Fiction: Hidden Bank Fees
Fact or Fiction: Hidden Bank Fees
10 Recession-proof Businesses
10 Recession-proof Businesses
10 Most Stressful Jobs in America
10 Most Stressful Jobs in America
Quiz: Building Your Nest Egg
Quiz: Building Your Nest Egg
Watch retirement videos »

You Might Also Like

How to Advance in a Company

Rising to the top of any organization takes more than just skill or ambition alone. A combination of the two -- with a good dose of research and hard work to back it up -- will help put you in a position to succeed. Are you ready to take your career to the next level?

How to Handle Workplace Bullying

Although bullies are often associated with childhood and schoolyards, the grown-up versions can cause just as much harm to workers on the job. What does workplace bullying look like, and why is it so hard to report?

Popular Articles

  • How can new communications tools cut costs?
  • How Focus Groups Work
  • How to Start a Fashion Company
Inside this Article
  1. Introduction to How Franchising Works
  2. What is Franchising?
  3. Advantages of Franchising
  4. The Rules: Fees
  5. The Rules: Restrictive Covenants
  6. The Rules: Trade Secrets
  7. Selecting the Right Franchise
  1. The Franchising Process
  2. Creating a Plan
  3. The Legal Aspects
  4. At the End of the Road
  5. Lots More Information
  6. See all Starting a Business articles
Previous Page

Money-saving Tips from Frugal Mama

FPO
  • Frugal Mama Makeover Series
  • Saving Big on Groceries
  • Home Renovations On A Tight Budget
  • Low-Cost, Thoughtful Gift Giving Tips
  • How An Expanding Family Can Trim Costs
  • Learn more frugal living tips»

New HSW Games

FPO
  • Memory Matrix
  • Volcano Explorer
  • Cannon Challenge
  • Raindrops
  • Color Match
  • Crab Fishing Game

Related Content

Prices: Franchising Guides

  • Franchising &amp; Licensing: Two Powerful Ways to Grow Your Business in Any Economy
    Franchising & Licensing: Two Powerful Ways to Grow Your Business in Any Economy

    Filled with illuminating examples, stories from the field, and dozens of forms for drafting franchising agreements and licensing programs, the fourth edition of "Franchising & Licensing" covers all the strategic, legal, financial, and operational aspects of these complex but highly profitable business strategies. Incorporating up-to-the-minute information on regulations, best practices, Web 2.0 strategies, branding techniques and global trademark laws, the new FDD disclosure format, and the latest franchising trends, this indispens able reference reveals how to: raise capital, structure agreements, and protect intellectual property; create market-responsive sales, marketing, and globalization strategies; establish quality control and compliance measures; and, assess opportunities for mergers and acquisitions, joint ventures, and other alternatives to franchising. Comprehensive and applicable to domestic and international franchising initiatives alike, this essential guide remains the industry standard.

    $29.70

  • Franchising
    Franchising

    This book is written for students of franchising as well as franchisors, franchisees or prospective franchisees. A three part perspective is developed throughout the book concerning the franchisor-franchisee relationship: first, a franchisor and franchisee are independent business people who must manage their separate business affairs; second, the franchisor and franchisee are dependent upon each other in order to be successful in business; and third, the franchisor-franchisee relationship brings with it an interdependent contractual obligation that is legally binding upon both parties.

    $154.76

  • Successfully Buy Your Franchise
    Successfully Buy Your Franchise

    Successfully Buy Your Franchise Expert Advice from a Business Broker If you are thinking about starting or buying a buying a business, one of your options will be to consider buying a franchise. You may decide to buy an existing franchise or buy the rights to a franchise and start from scratch. This comprehensive workbook will help you understand the complexities involved and the decisions you have to make. Written by a professional business broker with many years of real world business experience, this guide is intended to help you buy your franchise in the shortest possible time for the best possible price. You will learn many important lessons on how to: - Prepare so you know how to examine the different opportunities - Plan ahead for taxes and legal matters - Hire the right professionals to assist with the process - Avoid potential roadblocks and pitfalls - Obtain necessary finance - Conduct research and properly prepare for success - Search for the franchise that makes sense to you - Qualify your franchise options - Conduct effective negotiations Also included are dozens of worksheets, checklists and charts to help you prepare for and track each step of the transaction. According to the International Franchise Association, a new franchise opens every 8 minutes and drives over 40% of all retail business. Annually, franchising accounts for over $800 billion in sales and over $1 trillion of total franchise sales and employs over 8 million people. Buying a franchise can be a complex and emotional process that can be improved with knowledge and preparation. This workbook arms you with the tools you need to navigate through the transaction and successfully buy your franchise. Also check out the other books in this series.

    $29.95

HOWSTUFFWORKS
  • Adventure
  • Auto
  • Culture
  • Entertainment
  • Health
  • Home & Garden
  • Lifestyle
  • Money
  • Science
  • Tech
MORE STUFF
  • Blogs
  • Games
  • HSW Tools
  • RSS
  • Maps
  • Podcasts
  • Quizzes
  • Newsletters
  • Video
OUR WEBSITES
  • Animal Planet
  • Consumer Guide Auto
  • Consumer Guide Products
  • Discovery Channel
  • Discovery Fit & Health
  • HSW Brazil
  • HSW China HowStuffWorks China
  • Investigation Discovery
  • Oprah Winfrey Network
  • Planet Green
  • Science Channel
  • TLC
  • Discovery Education
  • Store
CUSTOMER SERVICE
  • Advertising
  • Contact Us
  • Help
CORPORATE
  • About Us
  • Careers @ Discovery
  • Privacy Policy
  • Visitor Agreement
TAKE US WITH YOU
FOLLOW US
© 1998-2012 HowStuffWorks, Inc