Google defines franchising as a verb meaning to "grant a franchise to (an individual or group). The term dates back to the late 18th century, but came in to popular usage from the 1950s forward.
Dictionary.com defines franchise as:
- a privilege of a public nature conferred on an individual, group, or company by a government:a franchise to operate a bus system.
- the right or license granted by a company to an individual or group to market its products or services in a specific territory.
- a store, restaurant, or other business operating under such a license.
- the territory over which such a license extends
Merriam-Webster defines franchise as:
- freedom or immunity from some burden or restriction vested in a person or group
- a special privilege granted to an individual or group
- especially : the right to be and exercise the powers of a corporation
- a constitutional or statutory right or privilege especially : the right to vote
- the right or license granted to an individual or group to market a company's goods or services in a particular territory also : a business granted such a right or license just opened a new fast-food franchise down the street
- the territory involved in such a right
What is the purpose of a franchise?
The purpose of a franchise is to allow a brand to expand without major outlays of capital, providing opportunity to entrepreneurs to buy into a proven model. You've Got Maids differentiates slightly in that the founders, Frank & Cynthia Berger, started the business with the intent of eventually franchising as their purpose was to help entrepreneurs reach their American Dream. It's a subtle distinction, but it makes a difference. For many brands, franchisees are the means to expand the brand. For You've Got Maids, the brand is the means to help more franchisees.
What are the benefits of franchising?
Compared to starting a business by yourself, the benefits of franchising lie in training, ongoing support, brand resources, and networking. At You've Got Maids, every franchisee is trained by the founders, Frank & Cynthia Berger, at our headquarters in the suburbs of Charleston, SC. Franchisees have access to the founders and HQ staff support through regular webinars, calls, and conventions. The brand has resources for the franchisee that allow them to look professional on day one. Furthermore, you'll be in a networks of like-minded entrepreneurs who will become a reliable peer network for you to learn from and growth with. Lastly, it is often easier to sell a franchised business than an independent operation.