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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.


Apply this pattern to your own business and create your next innovative business model!

Examples: Iconic Cases

How they do it: Panera Bread Bakery offers individual entrepreneurs to open a franchise location of their chain. Before opening, the entrepreneur has to sign a franchise agreement specifying his obligations, rights and the fees he has to pay to the company. These include e.g. franchise fee, supplies, and other fees.
Learn more about Panera Bread Bakery →

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: Renault maintains a large dealership franchise network worldwide, promoting both its main brand (Renault) as well as sub-brands (e.g. Dacia), for example in the UK and Ireland.
Learn more about Renault →

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 →

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.
Learn more about Shell →



Apply this pattern to your own business and create your next innovative business model!