1851

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. 

what-does-it-mean-for-a-restaurant-to-be-franchised

One Hour Heating and Air Conditioning

One Hour Heating & Air Conditioning Franchise - Paul and Will Harris - 1851 Franchise

Keeping the Crystal Coast Comfortable: How a Father-Son Duo Brought One Hour HVAC to Their Community

one-hour-heating-ac-franchise-paul-will-harris-crystal-coast

Caring Transitions

Caring Transitions: A Recession-Resistant Franchise Opportunity for Entrepreneurs

caring-transitions-a-recession-resistant-franchise-opportunity-for-entrepreneurs

Minuteman Press International

L-R: Bob Titus (CEO), Eric Shank (Catonsville, MD), Bob Heimbuch (RVP), and Nick Titus (President).

Minuteman Press Franchise Owner Eric Shank Recognized at World Expo

minuteman-press-franchise-owner-eric-shank-earns-standing-ovation-at-world-expo-for-growth-in-catonsville-md

Melting Pot

Melting Pot Expands Its Flavor Story With Seasonal Menus and Retail Line

seasonal-menu-retail-innovation

Griswold

How Griswold Honors Veterans Through Care, Employment Opportunities and Franchise Ownership

how-griswold-honors-veterans-through-care-employment-opportunities-and-franchise-ownership

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Crunch Fitness Franchise - Sixth Street Minority Stake - CR Fitness - 1851 Franchise

Sixth Street Takes Minority Stake in CR Fitness, the Largest Crunch Fitness Franchisee

cr-fitness-crunch-fitness-sixth-street-investment

houses, Why Top Franchises of 2025 Outperform Independent Businesses

Why the Top Franchises of 2025 Outperform Independent Businesses

how-franchises-outperform-independent-business-2025-tech-data

Photo of Happinest Brands teams standing together in front of branded vehicles

Happinest Brands Continues Strong 2025 Trajectory With Major Q3 Growth and Strategic Wins

happinest-brands-q3-franchise-growth

Franchise Owners Step Up To Support Communities During Government Shutdown - 1851 Franchise

Franchise Owners Step Up To Support Communities During Government Shutdown

franchise-community-support-shutdown

Slim Chickens Opens R&D Center at World Headquarters To Drive Menu Innovation

slim-chickens-rd-center-fayetteville

Senior Entrepreneurship - Franchising - 1851 Franchise

Senior Entrepreneurship Is Rising — And Franchising Is a Key Outlet

senior-entrepreneurship-franchising-silver-startups

image of jerome hanway from right at home Las Cruces, New Mexico 1851 franchise franchisee spotlight

Jerome Hanway Is Building His Right at Home Franchise Around His Mission To Serve

What Does It Mean for a Restaurant To Be Franchised?

MORE STORIES LIKE THIS