Top 10 Franchises For 2005

What is Franchising ?

The term ‘franchising’ has been used to describe many different forms of business relationships, including licensing, distributor and agency arrangements. The more popular use of the term has arisen from the development of what is called ‘business format franchising.’

Business format franchising is the granting of a license by one person (the franchisor) to another (the franchisee), which entitles the franchisee to trade under the trade mark/trade name of the franchisor and to make use of an entire package, comprising all the elements necessary to establish a previously untrained person in the business and to run it with continual assistance on a predetermined basis.

The principle is simple – some companies choose to grow, not by developing in the conventional way, but by granting a license to others to sell their product or service.

If you have a capital to invest for your startup business, franchising would be a good option for you. Even though deciding to go with a franchising may increase your startup costs, you will have many advantages of being an owner of a well known business which already has market share, and brand recognition.

Entrepreneur Magazine publishes top 500 franchises each year, and this is the list of top 10 franchises for 2005.

1. Subway
2. Curves
3. The Quizno’s Franchise Co.
4. Jackson Hewitt Tax Service
5. The UPS Store
6. Sonic Drive In Restaurants
7. Jani-King
8. 7-Eleven Inc.
9. Dunkin’ Donuts
10. RE/MAX Int’l. Inc.

We will be reviewing several franchising options at our Franchising category, and also write about advantages and disadvantages of different franchising brands.

You may also review the Top 500 Franchises for 2005 at Entrepreneur.com .