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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: 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 →
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: 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: 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 →
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
12% of firms using pattern
12% 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