Sparrow Franchising 101

FRANCHISING 101

What is a Franchise?

Franchises are a lot like a Platypus. We know one when we see one, but articulating exactly what it is isn’t as easy as it would seem.

Franchise Platipus - What Is A Franchise?
At its most basic level, franchising is simply a specific form of distribution for goods and services. But, (yawn!) that’s a pretty generic and wholly unhelpful definition. So, let’s dive a little deeper.

When we talk about specific forms of distribution, there are a number of networks that a business owner can create to expand the footprint of their product or service. Some of these networks include:

  • Distributors

  • Licensees

  • Corporate Locations

Learn more about those here

And of course, business owners can also forego those options and choose to become a franchise. So, what does that mean?

Retro Franchise - Sparrow Franchising

What makes a franchise a franchise?

Legally, the United States Federal Trade Commission regards a network of distribution outlets to be a franchise network if it satisfies the 3 criteria listed below.

    1. Those owning and running the outlets are required to pay more than $500 in the first six months of the relationship in order to have access to the product, service and/or intellectual property.
    2. The outlets are all required to use a shared trade name.
    3. The entity offering the opportunity exerts significant control over the ongoing operations of the outlet.

In the eyes of the Federal Trade Commission, if you offer an opportunity that checks these 3 boxes, you are offering a franchise, even if you call it something else.

Frustrated Franchisor - Sparrow Franchising

Still not sure ‘what is a franchise’? We can relate. Some of these terms or requirements may seem confusing. If so, don’t be afraid to contact us and ask any question you may have. We have heard (and answered) them all.

What is a franchise?  We can explain in detail.

Let’s set up a time to answer any questions you have.  We will glide you through the entire process – from wherever you are right now, all the way to your first franchise and beyond.  Contact us today for a FREE consultation.

First things first

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FRANCHISING 101

This is the first stage of the process and an important one. You are learning the basics and making sure your business is even franchisable.

Here’s some of the most frequently asked questions and the answers you need to know. We offer a free consultation and no question is off the table.

What is a Franchise?

At its most basic level, franchising is simply a specific form of distribution for goods and services.  But that’s a pretty generic and wholly unhelpful definition. So let's dig a little deeper...

Find out a lot more here >

Why should you Franchise?

With other expansion options available, how do you know if franchising is the right way to expand your business?

Find out a lot more here >

Alternatives to Franchising

There are other options to expanding your business other than franchising.

Find out about them all here >

Is my business Franchisable?

You have a successful business and you’ve decided you want to franchise it. How do you know if your business would make a good franchise system?

Find out here >

How to Franchise a business

A good franchisor should train, guide and support a franchisee in every aspect of their business. That means a good franchisor’s training and support infrastructure will never stop expanding and evolving. But, when you start, here are the 6 foundational pillars you’ll need to legitimately consider yourself ready to franchise.

Learn the 6 foundational pillars to franchising >

“If you can dream it, you can do it.”

Walt Disney

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How To Franchise Your Business



This free, 21-page ebook will guide your thorugh all the recommended and required steps. It's your flight plan for franchising your business.

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