What is a franchise? e.g. mcdonalds and Starbucks don’t own all their stores, some are franchises?!
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Starting a business is a big risk and there’s a ton to find and know and decide on. If you want to own your own but don’t want to go through the trial and error of developing a menu, building a supply chain, building brand recognition, setting up websites for recruiting,etc…etc….etc… You can buy in as a franchisee.
Corporate will provide you with access to various resources like their supply network, uniforms, menus, decor, branding that is widely known, sometimes access to things like HR resources, policies and procedures, bulk rates on equipment, all sorts of benefits a big organization has. In return, you agree to both pay them a cut of your profits and to conform to a variety of rules to ensure consistency across their brand.
It’s basically a starter kit for a small business, like a burger joint or coffee shop in your example. In return for the ease of use, you give up money and options.
Some franchisees become quite large and may open dozens of locations across a region and it’s quite common for brands to have more franchise locations than corporate owned ones, McDonald’s included.
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