What makes a Franchise a Franchise?
The word Franchise has been tossed around a lot in the corporation heavy world of today. A Fast food franchise, a movie franchise, an auto repair franchise, and the list goes on. But what makes a franchise worthy of the title? Well, the answer is simply more corporate stuff.
When a business expands enough to become licensed, it can become a franchise. For example, Disney is a well-known franchise, and when it purchases companies, they become part of it. Then those companies can sell specific products with the Disney logo on them, and also receive the support of the company.
For example, when Disney bought the Star Wars franchise, companies could sell Star Wars products in Disney stores and with the Disney logo. That’s the benefit of franchising for many people, it expands their audience and brings in more sales. Star Wars wasn’t its own franchise after the merger, but now was a part of Disney and Disney made the rules and regulations.
If a business can grow big enough and become licensed, then it can become a franchise. It’s all about the relationship’s larger franchisors, like Disney or Marvel, have with the smaller companies like Star Wars or Fox. Sometimes the relationship is just a “You can sell your products under our name” or a bigger one where “We now own your intellectual property, so we can use it now we see fit.” But most smaller businesses or franchises that need some revitalization, happily accept working with larger businesses because they can sell to more markets and rebuild themselves as things go on.
There are hundreds of franchises out there, from everything from entertainment to cars, and it doesn’t look like they will stop forming anytime soon. After all, it is good business.