No, a franchise is not typically considered a small business. A franchise is a business model in which an individual or entity (the franchisee) purchases the rights to operate a business that is owned and established another party (the franchisor). The franchisee pays fees and royalties to the franchisor in exchange for using their brand, trademarks, business systems, and ongoing support.
Franchises can range from small-scale operations to large multinational corporations, depending on the specific franchise system. Many well-known brands operate through franchising, such as McDonald’s, Subway, and Hilton Hotels.
While individual franchise locations may be independently owned and operated, the overall franchise system is usually part of a larger organization with significant resources and infrastructure.
Small businesses, on the other hand, are generally independently owned and operated enterprises with fewer employees and lower revenue compared to larger corporations. They are typically not part of a franchise system and do not operate under an established brand owned another entity.
It’s important to note that the size and scale of a business can vary, and there may be exceptions or variations in certain cases. However, in general, franchises are distinct from small businesses in terms of their structure, ownership, and relationship with the franchisor.
five examples of large franchises:
McDonald’s: McDonald’s is one of the world’s largest and most well-known franchises. It operates in over 100 countries and serves millions of customers daily.
The franchise model allows individual entrepreneurs to own and operate McDonald’s restaurants while benefiting from brand recognition standardized processes, and ongoing support provided the franchisor.
Subway: Subway is another global franchise with a vast network of sandwich shops. It has thousands of locations worldwide, making it one of the largest restaurant chains.
Franchisees receive training, access to the Subway brand, and assistance with store design and marketing.
7-Eleven: 7-Eleven is a convenience store franchise that operates in multiple countries. It offers a wide range of products, including snacks, beverages, and everyday essentials.
Franchisees benefit from the well-known brand, established supply chains, and ongoing operational support.
H&R Block: H&R Block is a tax preparation and financial services franchise. It provides tax preparation assistance, accounting services, and related financial products.
Franchisees receive training, software tools, and support from H&R Block’s established brand and expertise in tax preparation.
Hilton Hotels & Resorts: Hilton Hotels & Resorts is a global hospitality franchise that operates a vast portfolio of hotels and resorts worldwide. It offers franchise opportunities for entrepreneurs looking to own and operate a hotel under the Hilton brand.
Franchisees gain access to Hilton’s reservation system, marketing support, and operational guidance.
five examples of Small Business franchises:
The UPS Store: The UPS Store is a popular franchise that provides printing, packaging, shipping, and postal services.
Each location is independently owned and operated, offering a range of services to individual and business customers.
Anytime Fitness: Anytime Fitness is a global fitness franchise that offers 24/7 gym access and personalized training. Individual franchisees own and operate their gyms, providing a convenient fitness solution for members in their local communities.
Supercuts: Supercuts is a hair salon franchise that specializes in affordable haircuts and styling. Franchisees receive support and training from the franchisor while operating their own salon locations.
Papa John’s: Papa John’s is a well-known pizza franchise with locations worldwide. Franchisees operate their own pizza delivery and takeout restaurants, following the established Papa John’s brand and menu.
The Maids: The Maids is a residential cleaning franchise that provides professional cleaning services to households. Franchisees manage and supervise their cleaning teams, catering to customers’ cleaning needs in their respective territories.