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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.
Examples: Iconic Cases
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: 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: With Denner, entrepreneurs with experience in the grocery retail sector can open their own store with strong support from the corporation.
Learn more about Denner →
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: 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 9 firms using this pattern.
Top Industries
Retail
24% of firms using pattern
24% of firms using pattern
Transportation
14% of firms using pattern
14% of firms using pattern
Consumer Goods
10% 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
E-commerce
1 pattern co-occurrences
1 pattern co-occurrences
No Frills
1 pattern co-occurrences
1 pattern co-occurrences
Reverse Engineering
1 pattern co-occurrences
1 pattern co-occurrences