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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: 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: Levi’s allows independent entrepreneurs to open a Levi’s store for them. This is avaivable in strategic markets for Levi’s in which the penetration of the brand is not saturated yet. In addition entrepreneurs have to fulfill several other qualifications in order to be considered as a franchising partner (e.g. experience and capital). When running the store, Levi’s requires an initial franchise, advertising and royalty fees.
Learn more about Levi's →

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 →

How they do it: Harley Davidson works together with individual dealers, opening and running a brand store for them which can focus on motorcycles and service or also just general merchandise. The company supports its dealers with financial and insurance services such as receivable financing.
Learn more about Harley Davidson →

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 →



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