The hardest part of starting a business is coming up with a business idea and making it work. But with Franchises, there's no need to brainstorm business ideas. Franchises provide an entrepreneur with a ready-to-go business. Some businesses that are franchises include McDonalds, Burger King, Subway, Quiznos, Curves, and Jackson Hewitt Tax Service. There are thousands of franchises that you can choose from to open in your town.

     What is a Franchise? - A Franchise is an individually owned an operated business that has a brand name. A person or business who buys a franchise is called a "Franchisee". The person or company who sells a franchise is called the "Franchisor". The Franchisor provides a well-known business name, management skills, and a method of doing business. The franchisee operates the business by hiring employees, investing capital, and abiding by the franchise agreement.

     If you see a Subway or McDonalds franchise, it is owned by a franchisee. The Franchisee makes sure that his or her business (the franchise) runs smoothly day in and day out. So when you start a franchise, your are starting a ready-to-go business that just needs some customers. Subway has almost 20,000 stores in the United States. But Subway only owns one of them. The rest are operated by Franchisees.

     How do I find companies that offer franchises? - Finding a company that sells sells franchises in relatively simple. You can do a google search for "Franchises", or "Franchises List". Every year Entrepreneur.com makes a list of the top 500 franchises, which you can find here. Subway has been the number one franchise five years in a row. To get more information about a particular franchise, call the franchisor, or visit there webpage and look for a link that says "Franchises" or "Own your own store"

     How much do franchises cost? - There are several upfront and long-term fees associated with a franchise. The first fee is called the Franchise fee. The franchise fee is a one-time payment to the franchisor. Then there's the royalty fee. The royalty fee is a certain percentage of sales that goes to the franchisor. Subway's royalty fee is 8%. So that means if a franchisee sells $10,000.00 worth of sandwiches, $800.00 of that goes to the franchisor. There are also quarterly advertising fees which are paid to the franchisor. The cost of the fees depends on which type of franchise you plan to open. Each franchisor sets the fees for opening a franchise, so the fees vary. Also the franchise has to pay for all the other costs associated with running the business (such as utilities, rent, labor, etc).

     Most franchisors require you to meet certain requirements before you can apply to open up a franchise. For example, Subway requires you to have a Net Worth between $30,000.00 and $90,000.00. Subway also requires you to have $30,000.00 to $90,000.00 avaliable in cash or cash equivalents(stocks, bonds, etc.). You'll also have to attend training at the franchisor's company headquarters, which is usually located out-of-state.