A franchise business grants the rights to individual owners, or franchisees, to use the company’s name and branding and sell its products and services. The company granting the rights is known as the franchisor. Franchise owners receive training, guidance and support from the franchisor but are required to run their individual location while adhering to specific standards and operating systems in order to maintain consistency and brand integrity.

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In franchising, the parent company known as the franchisor sells the rights to operate individual locations under the company’s name and branding and sell its products and services. The relationship is set up through the franchise agreement. These agreements vary from franchisor to franchisor, but typically allow an individual to run a franchised location for a set fee and specific amount of time. In addition to franchise and start-up fees, most franchises also require their unit owners to pay ongoing royalty and sometimes advertising fees. The franchisor provides its franchisees with ongoing guidance, training and support throughout the length of the franchise agreement.

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If you’re interested in starting a franchise there are a few steps you should take to get started. First, you’ll need to find the franchise or franchises you are interested in. Maybe you already have a brand or two in mind, or maybe you are interested in a specific industry. Once you have identified franchise opportunities that interest you, submit your information using the online form and a representative from the franchisor will contact you to follow up and begin the process.

Perhaps the biggest advantage of buying a franchise is decreased risk than going it alone to start a business. Franchising provides entrepreneurs with an established name and branding as well as training and support which improves your chances of success. Of course this does not mean that it doesn’t take hard work to build a franchise business, but having these elements in place provides a greater foundation than starting a business from scratch.

Franchising can have many benefits but also comes with its own set of risks. The biggest advantage of buying a franchise is the training and support you receive from the franchisor as well as the name recognition. However, when you buy into a franchise system you are agreeing to operate your business as dictated by the franchisor with little autonomy. It’s important to fully examine all of the pros and cons to buying a franchise before making your decision.

The two main types of franchises are business format franchises and product distribution franchises. Franchise businesses are available in more than 150 industries ranging from automotive and healthcare to food and education. There is no shortage of franchise types available for those looking to pursue their dream of owning a business.