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A restaurant becomes a franchise when its owners decide to license their branding and operational model to other entrepreneurs, who open, own and manage their own restaurants with the brand.<a href="https://www.mcdonalds.com/us/en-us/about-us/franchising/franchising-faq.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-does-it-mean-for-a-restaurant-to-be-franchised-2715090#:~:text=How%20much%20is%20a%20McDonald's,be%20paid%20to%20the%20franchisor." target="_blank" rel="nofollow">McDonald’s</a> is perhaps the most well-known example of a franchised restaurant. Most McDonald’s are owned not by the McDonald’s corporation, but by entrepreneurs — or, franchisees — who handle the day-to-day operation of their stores while the larger corporation — or, franchisor — provides operational guidance, marketing support, vendor contracts and other resources.&nbsp;When a restaurant is franchised, it means the business model has proven sturdy enough to succeed on its own, without the hands-on guidance of its original founders or owners. McDonald’s has established a brand name, reputation and processes of service that make it profitable to own and easier to launch than an entirely new brand, which is worth a lot of money to investors.&nbsp;<h4>Difference Between Chains, Franchises and Independents</h4>Chipotle, on the other hand, is a chain restaurant, meaning every single Chipotle location is owned by the Chipotle Mexican Grill corporation. Consumers likely don’t notice the difference between chain and franchise restaurants, as both McDonald’s and Chipotle stores have a unified look and similar offerings across locations.&nbsp;Unlike chains, franchised restaurants have greater flexibility in how they staff their stores and engage with their communities. Usually, a franchised business is owned by a local entrepreneur with ties to their geographic location. It’s much more likely that a franchised restaurant would support a local softball team, for example, than a large corporation.

What Does It Mean for a Restaurant To Be Franchised?

1851 Franchise

Restaurants fall into three broad categories: independents, chains and franchises. 

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Pet Wants

The Power of Personalization: How Custom Nutrition Plans Drive Business Success at Pet Wants

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Griswold

Griswold Franchisee Beth Copeland Featured in Entrepreneur Magazine

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Fresh Coat

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How Fresh Coat Franchisees Scale Through Commercial and Multi-Family Projects

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Beansquad

Franchise Financial Health Check: BeanSquad’s Diagnostic Approach to Bookkeeping

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Paris Baguette

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Is the Paris Baguette Franchise Worth the Investment? Understanding the Franchise Fee and ROI

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Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

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Caribou Coffee Names Scott Kennedy CEO, Eyes Continued Growth

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Wendy's CEO Kirk Tanner Steps Down - Breaking News - 1851 Franchise

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Small Business Optimism Dips, Raising Concerns for Franchise Owners

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Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

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Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

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Young Entrepreneur Parth Patel Is Bringing Paris Baguette to the Cleveland Area

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Cleaning Franchises Offer Stability and Scalability in a Changing Economic Landscape

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Army Veteran Returns Home To Launch Caring Transitions Franchise in Reading, Pennsylvania

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What Does It Mean for a Restaurant To Be Franchised?

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