A franchise is a business owned by an individual with a licensing agreement from a franchisor. A partnership, on the other hand, involves having two or more people operating and managing a business. While a franchise is managed by a single person, they have to follow the rules of the contractual relationship.
What is a franchise partner?
Franchising is a contractual relationship between a licensor (franchisor) and a licensee (franchisee) that allows the business owner to use the licensor’s brand and method of doing business to distribute products or services to consumers.
Can two people Co own a franchise?
In franchising, it’s also possible to open multiple units of different brands, especially if the same franchisor owns the brands, but if multiple franchisors are involved, you can expect some resistance. The best advice here is to prove yourself in one brand first.
What’s the best way to buy a franchise?
Buying and owning a franchise is a big, life-changing decision. Some choose to take the path alone. Others partner with a friend, spouse, or family member. Still others go in with a silent investor.
What are the pros and cons of franchise partnerships?
“Having a partner allows the security of not being alone and knowing there’s a built-in team,” says Butler. You can pool your ideas and your money. Butler and Oglesby both used part of their 401 (k)s to purchase the franchise.
What to look for in a business partnership?
Ensure the friendship and partnership have boundaries; you can’t allow personal issues to bleed into the business relationship. Don’t assume a good friendship equates to a good business partnership.
Why did Tara Butler and Charles Oglesby open a franchise?
“Each person has different strengths that, when [combined], make a stronger unit,” says Tara Butler, who opened a Gamin’ Ride franchise in Waldorf, Maryland, in 2010 with her friend Charles Oglesby. You’re not alone. “Having a partner allows the security of not being alone and knowing there’s a built-in team,” says Butler.
