If you’re interested in starting your own business, buying a franchise might be the way to go! Franchising is a great way for many people to pursue their goals of business ownership without the added risk or uncertainty of an independent startup or buying a business flat out.

In this post, we are going to take a closer look at what exactly franchising is and what kind of value it can bring to your life!

Want to learn more about the CITYROW Franchise Opportunity? Download our Franchise Information Lookbook!

What is Franchising?

Franchising is a business model in which an independent business owner, the franchisee, pays a franchise fee in exchange for use of the business model, brand name, trademarks, and support of the franchisor. It’s a great solution for prospective business owners to go into business for themselves without having to start from scratch. 

Franchisor and Franchisee Relationship

Franchising brings about a variety of opportunities for both the franchisor and franchisee. For the franchisor, it allows for faster expansion, lower costs, simpler management, and enhanced market penetration, all of which can increase overall profit levels for the brand and quickly build a positive and widespread reputation. The franchisee likewise benefits from the brand’s pre-existing reputation, marketing, network, and customer base.

In a franchise system, a franchisor has developed an effective product or service, ways of marketing and selling it, and a sound business model. By paying the franchisor a one-time franchise fee and ongoing royalties, a franchisee receives access to franchisor licenses, trademarks, and proprietary information and products. The franchisee is the owner of the business and, as such, is free to make decisions on its operation and management. But there are still certain brand guidelines and policies to uphold the integrity of the brand and ensure a consistent experience across all locations. 

As a franchisee, you get to experience the best of both worlds. Franchising allows you to be in business for yourself, but with the full support and backing of a successful, knowledgeable, and experienced company. Your franchisor and their partner companies will be an ongoing resource for you—they will provide you with ongoing opportunities to scale your business and expand your revenue.

The Franchise Agreement

The franchise agreement details payments, terms, supply chain, privacy, accounting, employee requirements, software, and property (if being leased from the franchisor). It may also specify exit plan options and contain a non-compete clause.

This agreement will lay out all of the forms of support that the franchisor will offer—including territory selection, real estate and construction, business coaching, training programs, marketing, and so much more.

As part of the franchise rule set forth by the Federal Trade Commission, or FTC, a franchisor is required to provide potential franchisees with a Franchise Disclosure Document containing information on the business, the investment, and past financial performance at least 14 days prior to signing a franchise agreement. 

For more information, visit the Consumer’s Guide to Buying a Franchise from the FTC.

Why Franchise?

50% of new business start-ups fail within the first five years, but 90% of franchises are successful! According to AZFranchises.com:

  • The franchise industry provides 18 million jobs to the U.S. economy 
  • Franchising generates $2.1 trillion in revenue
  • Franchising spans 300 industries
  • 10.5% of businesses are franchises
  • A new franchise business opens every 8 minutes of the business day
  • The average initial investment to open a franchised business (all-inclusive) is $250,000

As a franchisee, it is entirely up to you how involved in the day-to-day operations you are. Depending on your goals and lifestyle, you can choose to be a full-time owner/operator, hire a manager to run the operation on your behalf (be an absentee franchisee), or settle into a role somewhere in between. 

Franchising sets you up for success when starting your business, during your grand opening, and as your business grows. Some of the benefits of franchising, especially when compared to an independent start-up, include access franchisee training and support, a proven business model, brand recognition, easier accessibility to capital, and a faster path to profitability. 

Franchise!

3 Tips for Prospective Franchisees

Even though the franchisor will be there to support you, becoming a business owner of any type still requires planning, hard work, and continuous improvement. Here are our top tips for franchise success:

Due Diligence

Do your research on the franchisor, financial performance, franchisee support, crisis management plans, as well as market research for your anticipated territory. Be sure to understand what is required of you as the franchisee and have a plan in place to finance your business (you may want to seek out advice from an accountant).

Follow the Systems

The franchisor systems have been developed and perfected for replication within a franchise system. If you follow the systems and guidelines in place for marketing, customer service, technology, community outreach, and business operations, you will maximize your potential to succeed. 

Never Stop Learning

As a business owner, you should always be striving to improve. Fortunately, being a part of a franchise system allows you to have the support of industry experts behind you, as well as an entire community of fellow franchisees that you can collaborate with to brainstorm new marketing ideas or share wins and other helpful advice.


Franchising as a business model continues to grow within the American economy. Countless families and individuals have found the financial and lifestyle freedom they are looking for by pursuing franchise ownership. Better yet, no prior business experience is necessary in order to purchase a franchise—the franchisor will provide you with all of the support and training you will need in order to be successful. So don’t put it off any longer. Take control of your future and become a franchise owner today!

Franchise With Us!

Download our Franchise Lookbook for more information on the CITYROW franchise opportunity. Get in touch with us today to discuss the next steps in opening your own CITYROW Studio!

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