Let’s break down some insider terms:

Franchise

We’ve all used this term to describe a business by saying something like, “McDonald’s is a franchise.” Here is the actual definition of a franchise, “an authorization granted by a government or company to an individual or group enabling them to carry out specified commercial activities.”

Franchisor

Sometimes also called a franchiser, this is the individual or company that sells a franchise to be run as an independently owned and operated business. This entity sets the terms of running this business under the brand such as using certain colors and fonts and logos in marketing and advertising materials. A franchisor will provide training, guidelines, rules, and other support to its franchisees.

Franchisee

A franchisee is the individual or group that purchases the license to operate a territory or location of the business under the franchisor’s brand and guidelines.

Entrepreneur

An entrepreneur is someone who starts a business to sell a product or service directly to consumers or other businesses (called B2C or B2B or even B2G for those that sell to the government).

We’re In a Relationship Now

When a franchisee purchases a franchise location, the business relationship between them and the franchisor is called franchising. There is a process involved in determining if the two parties will be a good fit in business together and then once all of the papers are signed and the payment of the franchise fee and other payments are made, the buyer becomes a franchisee.

The franchisor will have a proven business model for the franchisee to emulate in their local market. Franchisors will likely also provide initial training during the onboarding phase to set their franchisees up for success.

It should be noted that a franchisee does not necessarily have to be an expert in the industry into which they are buying a business. While it can be beneficial if someone has a particular professional background or training, it is often not necessary to have credentials in a specific field to own a franchisee. That said, passions are a plus! Certain business will require the ability to interact a lot with people so they are best for those that love to engage with the public, for example.

A franchisor should provide tools such as licensed business management software, inventory management systems, and marketing materials for the franchisees to access (either as part of their agreement or for an agreed-upon fee).

Why Franchise?

Since anyone can start a business on their own, what’s the appeal of franchising? Glad you asked!

Some benefits to owning a franchise vs. starting your own business:

1. You have someone to call when you have questions. The franchisor has been there, done that when they started this brand and that’s how they built the systems for you. A first-time entrepreneur has to find someone in a similar industry, a mentor, or take a business class when they run into obstacles.
2. Few entrepreneurs are marketers so they need enough capital to hire an expert. A franchisee will have built-in marketing support tools to lean on as they learn the ropes for what works best in their location.
3. In a word, training. Imagine someone providing a week or two of hands on training for you to be a success in your new business rather than years of self-training as you go. The franchisor has already learned a lot of lessons and can teach you how to find clients, how to operate, and how to sell your product or service.
4. Depending on the size of the franchisor, a franchisee may have access to bulk discounts on equipment and materials that they couldn’t get on their own as an independent business.
5. On-going support. When someone becomes a franchisee, there is the initial training and setup, but that never goes away and a franchisee can continue to tap into the knowledge of a large network of fellow franchisees to learn and grow their business as the franchisor provides networking opportunities.

You + Me

If franchising appeals to you, and you have a passion for food, nutrition, teaching, children, and growing a business in your community, Sticky Fingers Cooking could be the right opportunity.

In our FAQs, you can learn about startup costs, approximate potential earnings in the first year in business, how the business can be run from home, and much more.

Inquire about the Sticky Fingers Cooking franchise opportunity today and see if we got together like peanut butter and jelly…or is it biscuits and gravy? Or chips and salsa?