Franchising 17#
The franchisor owns the brand name, products, and corporate identity, and these are licensed to independent franchisees who carry the risk of local operations. Revenue is generated as part of the franchisees’ revenue and orders. The franchisees benefit from the usage of well known brands, know-how, and support.
Examples: Iconic Cases
How they do it: In the United States, Shell has a network of strategically-located local service stations, offering convenience retailing as well as a variety of fuel products. Shell offers franchise opportunities for suitable candidates. Successful applicants are required to have at least 10 percent unencumbered cash of the total capital required for investment.
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How they do it: With Denner, entrepreneurs with experience in the grocery retail sector can open their own store with strong support from the corporation.
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How they do it: Individual entrepreneurs are able to open their own McDonald restaurant. They are responsible for running their own (or multiple) restaurants but need to adhere to all corporate set standards e.g. purchasing, product offering, and corporate identity.
Learn more about McDonald's →
How they do it: Subway is one of the fastest-growing franchises in the world and, as of June 2017, has approximately 45,000 stores located in more than 100 countries. More than half of the stores are located in the United States. Subway collects recurring royalty fees and an upfront franchise fee from independent store operators.
Learn more about Subway →
How they do it: Marriott allows independent entrepreneurs to open a Marriott brand hotel upon terms and conditions set forth in a franchise agreement. The entrepreneur has to pay initial franchise fees as well as ongoing fees both for central operated infrastructure such as the Marriott booking system as well as fees that are based on the room sales.
Learn more about Marriott International →
Below, the top industries for the pattern "Franchising" are displayed, in order to get insights into how this pattern is applied across different industries. We've collected data from 5 firms using this pattern.
Top Industries
24% of firms using pattern
12% of firms using pattern
10% of firms using pattern
All Industries
Below, the pattern "Franchising" is analyzed based on co-occurrence, in order to get insights into how this business model pattern is applied in combination with other patterns within the firms we studied.
Top Co-Occurrences
3 pattern co-occurrences
2 pattern co-occurrences
2 pattern co-occurrences