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It’s easy to understand why people sometimes get confused about the difference between licensing and franchising because both are legal agreements to use a brand name that —&nbsp;if you’ve done your research properly — has a proven record of success.A licensing agreement allows the licensee to use, make and sell an idea, design, name or logo for a fee, whereas a <a href="https://1851franchise.com/sportclips/are-franchise-agreements-really-one-sided-4103#stories">franchise agreement</a> allows the franchisee to operate a business as an independent branch of a company for a fee. And whether you sign a franchise agreement or a licensing agreement, you’ll have to pay a certain percentage of your sales back to the franchisor or licensor in royalties.&nbsp;But there are also many differences between the two types of agreements, and legal oversight is one of the biggest.&nbsp;Franchise agreements are governed by securities law while licensing agreements are governed by contract law. Often described as a “license on steroids,” the <a href="https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/franchise-rule?utm_source=1851franchise.com&utm_medium=article&utm_campaign=whats-the-difference-between-licensing-and-franchising-2715756" target="_blank" rel="nofollow">Federal Franchise Rule</a> governs all franchise transactions throughout the U.S. and is enforced by the Federal Trade Commission. The rule requires franchisors to provide all potential franchisees with a disclosure document containing specific information they need in order to weigh the risks and benefits of a franchise investment. The Federal Franchise Rule defines a franchise as a company that meets the following criteria:<ul><li>Has a trademark, trade name, advertising or other commercial symbol the recipient can use in its business</li><li>Provides significant assistance to the recipient in their business operations</li><li>Charges a fee for their services</li></ul>While a licensor may likely have one or two of those elements, if it doesn’t have all three, it’s not a franchise. And that means a licensing agreement is not governed by the FTC, but rather state contract law through a <a href="http://www.jurisdiction.com/grant.htm?utm_source=1851franchise.com&utm_medium=article&utm_campaign=whats-the-difference-between-licensing-and-franchising-2715756" target="_blank" rel="nofollow">grant clause</a>. If problems arise, remedy for a breach of contract would be resolved by the state where the contract was drawn, so it makes sense to check specific state laws, especially with regards to the statute of limitations.Territorial rights are another thing to consider when debating between a franchise and a license agreement. Franchisors typically ensure that franchisees don’t cannibalize each other’s revenues, while licenses are usually non-exclusive, meaning they can be sold to multiple competing companies serving the same market.Support and training is one of the hallmarks of most franchises, giving franchisees access to branding and marketing support, ongoing training programs, coaches, mentors and more. And with many of the elements and operations of running a business already in place, franchisees can often hit the ground running much quicker than they would if they were running their own business.&nbsp;While licensees typically do not receive the same kind of training, counseling and support to ensure their success, they often enjoy a lot more freedom than franchisees. If you buy a franchise, you are bound to adhere to the operations and processes set forth by the franchisor, which in some cases can be <a href="https://www.nytimes.com/2019/06/28/business/subway-franchisees.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=whats-the-difference-between-licensing-and-franchising-2715756" target="_blank" rel="nofollow">overly controlling, harsh and punitive</a>. If you purchase a license, your business operations will not be controlled by the licensor.&nbsp;Whether you decide to become a franchisee or a licensee is often a matter of your personal preferences as a business owner. But in the end, the most important decision isn’t the type of legal agreement you enter into — it’s the company and the brand that will determine your success.&nbsp;

What’s the Difference Between Licensing and Franchising?

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Often the choice between licensing and franchising boils down to whether you want a turnkey business or a business free of restrictions and control.

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Mathnasium

Mathnasium, Mathnasium franchise, Mathnasium pi day, Pi Day, Pi Day 3.14, Pi Day 2026

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Private Equity Fuels Jiffy Lube’s Next Chapter as Monomoy Strikes $1.3 Billion Deal

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McDonald’s and Burger King Take the QSR Burger Wars to Social Media

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Yum! Brands Pizza Hut Sale - 1851 Franchise

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KBP Brands Acquires 78 SONIC Locations Across Five States

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<a href="https://hardeesfranchising.com/">Hardee’s</a>, a 65-year-old burger chain best known for its Thickburgers and breakfast biscuits, is facing a fast-moving round of closures driven by a franchise dispute rather than a bankruptcy filing.&nbsp;<a href="https://www.inc.com/ava-levinson/hardees-shutting-dozens-restaurants/91282586">Inc. recently reported that</a> 77&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-hardees-franchise-costs-fees-profit-and-data-2721286">Hardee’s</a> restaurants are expected to close within two weeks as one of the brand’s largest franchisees exits the system.&nbsp;According to the report, Hardee’s is suing&nbsp;<a href="https://www.arcburger.com/">ARC Burger</a> — a franchise operator owned by&nbsp;<a href="https://www.highbluffcap.com/">High Bluff Capital Partners</a> — alleging the company fell behind on required payments and other contract obligations. Twenty-eight locations had already gone dark as of late December, with remaining sites scheduled to shutter across eight states: Alabama, Florida, Georgia, Illinois, Missouri, Montana, South Carolina and Wyoming.&nbsp;At the center of the complaint is the franchising “stack” of ongoing fees and pass-through costs that keep a system running. ARC Burger allegedly owes more than $6.5 million, including royalties, advertising fund contributions, technology and training fees, rent and taxes, and that payments stopped in December 2024. Hardee’s also argued in the lawsuit that the franchisee’s cash flow was not being used to bring accounts current.&nbsp;Hardee’s, for its part, is framing the shutdowns as a contractual enforcement issue, not a brand-wide retrenchment. “These closures are a result of ARC Burger’s failure to cure its defaults under its franchise agreements, despite solid sales,” a Hardee’s spokesperson said.&nbsp;The situation highlights a familiar franchising pressure point: unit economics. Inc. reported that Hardee’s operates more than 1,800 U.S. restaurants and that average annual sales per location are less than $1.2 million, well below averages cited for&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-wendys-franchise-costs-fees-profit-and-data-2722520">Wendy’s</a> and&nbsp;<a href="https://1851franchise.com/how-much-does-it-cost-to-buy-a-mcdonalds-franchise-2724654#stories">McDonald’s</a>. Lower volumes can leave franchisees with less room to absorb higher labor, food and occupancy costs while staying current on fees.&nbsp;Hardee’s said it is working to limit fallout for workers and communities and is looking for ways to reopen closed restaurants. For franchising, the next chapter will likely involve finding replacement operators, transferring sites and rebuilding compliance — a reminder that franchise growth depends as much on franchisee solvency and execution as it does on consumer demand.Read the original article&nbsp;<a href="https://www.inc.com/ava-levinson/hardees-shutting-dozens-restaurants/91282586">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="https://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

Hardee's Franchise - ARC Burger Lawsuit - 1851 Franchise

The closures stem from alleged unpaid royalties and missed franchise obligations by a major operator, not a broader chainwide collapse for the Hardee’s system.

Hardee’s Lawsuit Targets Franchisee as 77 Restaurants Prepare to Shut Down

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As the health and wellness business in America continues to fill out, the fitness industry is growing alongside it. The industry now generates&nbsp;<a href="https://www.ibisworld.com/united-states/industry/gym-fitness-franchises/5599/">over $7 billion</a> in annual revenue, with a revenue increase of nearly 3% in 2023 alone.Rebounding since COVID, both big box and boutique franchises have shown&nbsp;<a href="https://athletechnews.com/fitness-franchising-by-the-numbers-10-key-stats/">membership growth</a>, with premium establishments up 21% compared to a whopping enrollment bump of almost 70% on the budget gym side.&nbsp;&nbsp;<h3>The Pros And Cons Of Big Box Gyms</h3>When it comes to choosing the right fitness franchise, there are pros and cons to each.Big box gyms are able to cast a wider net, attracting a clientele ranging anywhere from newbie to seasoned veteran, with a lower cost of entry potentially attracting even the marginally curious to the idea of a well-established, properly marketed brand.&nbsp;Big box and other low-cost fitness franchises are also able to capitalize on services like personal training and retail amenities, increasing revenue.Driven by recurring membership fees, big box gyms generally cost less. However, the wider net cast in terms of building a clientele, tends to require more equipment in a bigger space, increasing costs like rent. And with a wider array of workout machines to both service and maintain, additional costs tend to follow.<h3>The Pros And Cons Of Boutique Fitness Concepts</h3>On the boutique side, franchises are typically able to offer a more personalized fitness experience, catering to niche markets with an eye on community, quality and loyalty. However, a more hands on approach to management and day-to-day operations may also be necessary to deliver the more customized, immersive experience often demanded of the more boutique environment.As a result, boutique fitness concepts are typically able to capitalize on a more premium pricing model driven by the idea of exclusivity.But, while less equipment in a smaller space can help rein in expenses, it can also be difficult to build the more specific clientele required by the boutique experience, rendering selection of proper location crucial.<h3>Finding The Right Fit</h3>As potential franchisees assess the available opportunities in the fitness franchise realm, it’s important to ponder a number of factors which can impact the bottom line.In terms of budgeting, a full understanding of both initial investment and ongoing operational costs is crucial.&nbsp;Getting to know the customer and surrounding area can help franchisees assess just how much the consumer is looking to pay for a gym membership, helping clarify the big box versus boutique decision when it comes to the question of how to buy a franchise.There’s also market saturation, with big box gyms in particular becoming an increasingly crowded marketplace.On the management side, it’s important for franchisees to seize upon a specific approach, whether it’s applying a more hands on style to the level of personal interaction required on the boutique side or focusing on the moving parts in play in the larger, more complex big box environment.&nbsp;When it comes to buying a fitness franchise, an understanding of the consumer, proper assessment of the marketplace and specific approach to management can go a long way towards avoiding potential risk, helping franchisees find success as they ponder entrepreneurship via fitness franchises.For more info on fitness franchises, check out these related stories on 1851 Franchise:<ul><li><a href="https://1851franchise.com/fitness-franchises-2025-trends-opportunities-2729600">The Rise of Fitness Franchises in 2025: Trends, Opportunities and What to Expect</a></li><li><a href="https://1851franchise.com/top-health-and-wellness-franchises-2729821">Top 15 Health and Wellness Franchises Opportunities for 2025</a></li><li><a href="https://1851franchise.com/fitness-wellness-franchise-guide-2729443">How To Choose the Right Fitness or Wellness Franchise for You</a></li></ul>

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As the fitness industry continues to grow fast, the decision for potential franchisees lies in whether to invest in big box or boutique gym franchise opportunities.

Boutique vs. Big Box Gym Franchises: Which Offers Best ROI in the $7 Billion Fitness Market?

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<a href="https://kbpbrands.com/">KBP Brands</a>, the multi-brand franchisee group with over 1,100 restaurants across 32 states,&nbsp;<a href="https://www.prnewswire.com/news-releases/kbp-brands-doubles-down-on-sonic-with-78-restaurant-acquisition-302695591.html">has announced</a> its acquisition of 78 additional SONIC units. The new units are spread across Ohio, Kentucky, North Carolina, Tennessee and Virginia.This is the second SONIC acquisition KBP has completed in less than two years, and it makes KBP the fourth-largest SONIC franchisee in the system with 164 total locations across eight states.“We’ve had a successful five-year partnership with Inspire Brands and have seen strong results from our initial SONIC purchase,” KBP CEO&nbsp;<a href="https://www.linkedin.com/in/mike-kulp-820820">Mike Kulp</a> said in a statement. “We look forward to expanding that with a larger footprint and additional operational efficiencies.”KBP is one of the country’s largest franchisee groups, reporting approximately $1.5 billion in annual sales across its portfolio, which includes KFC, Taco Bell and Arby’s, another Inspire Brands franchise."Our relationship with KBP Brands continues to grow due to their operational excellence and our shared commitment to guest satisfaction and a culture that champions innovation," said&nbsp;<a href="https://www.linkedin.com/in/john-kelly-b48426b">John Kelly</a>, brand president at SONIC. "KBP's expansion with SONIC demonstrates their dedication to our vision and the brand's long-term growth."Read the full press release&nbsp;<a href="https://www.prnewswire.com/news-releases/kbp-brands-doubles-down-on-sonic-with-78-restaurant-acquisition-302695591.html">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

The franchisee group, which already operates over 1,100 units, is growing its portfolio with the quick-service brand, becoming one of SONIC’s largest franchisees.

The fast-food “burger wars” have gained new momentum following the launch of&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-mcdonalds-franchise-costs-fees-profit-and-data-for-2025-2720737">McDonald's</a> newest oversized menu item, the&nbsp;<a href="https://www.mcdonalds.com/us/en-us/product/big-arch-burger.html">Big Arch Burger</a>. The sandwich is designed to appeal to customers who want a larger burger than the traditional Quarter Pounder offerings, and it represents a major product push for the company. CEO&nbsp;<a href="https://www.linkedin.com/in/chriskempczinski/">Chris Kempczinski</a> has been closely associated with the launch and even promoted the burger on his Instagram channel, where he frequently posts videos about menu items, travel and career advice.Kempczinski posted a promo video where he filmed himself with the Big Arch Burger, commenting on its size before finally taking a bite. But let's just say social media wasn't buying it.&nbsp;<figure class="media"><div data-oembed-url="https://www.instagram.com/p/DUTZ_ilDl41/"><div class="iframely-embed"><div class="iframely-responsive"><iframe src="//cdn.iframe.ly/api/iframe?app=1&amp;api_key=fd3b6b3731f34f55ba1fe3&amp;url=https%3A%2F%2Fwww.instagram.com%2Fp%2FDUTZ_ilDl41%2F" frameborder="0" allow="autoplay; encrypted-media" allowfullscreen=""></iframe></div></div></div></figure>People immediately criticized the clip, suggesting his tiny bite and general way of acting seemed fake. The video blew up and became a big meme, with people poking fun at the whole moment and wondering if the CEO's reaction was even real.<figure class="media"><div data-oembed-url="https://x.com/TrungTPhan/status/2028174448646594902"><div class="iframely-embed"><div class="iframely-responsive"><iframe src="//cdn.iframe.ly/api/iframe?app=1&amp;api_key=fd3b6b3731f34f55ba1fe3&amp;url=https%3A%2F%2Fx.com%2FTrungTPhan%2Fstatus%2F2028174448646594902" frameborder="0" allow="autoplay; encrypted-media" allowfullscreen=""></iframe></div></div></div></figure>Rival chain&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-burger-king-franchise-costs-fees-profit-and-data-2720751">Burger King</a> seized the opportunity to poke fun at the situation. The company reposted a video of its North America president,&nbsp;<a href="https://www.linkedin.com/in/tom-curtis-43646018">Tom Curtis</a>, taking an exaggeratedly large bite of a Whopper — complete with mayonnaise on his face — in a playful jab at McDonald’s viral moment.&nbsp;<a href="https://news.bk.com/blog-posts/burger-king-elevates-its-most-iconic-product-the-whopper-r">Burger King recently updated its Whopper recipe</a>, making the timing of the social media exchange particularly fitting.<figure class="media"><div data-oembed-url="https://www.instagram.com/p/DVZoZQJjti8/"><div class="iframely-embed"><div class="iframely-responsive"><iframe src="//cdn.iframe.ly/api/iframe?app=1&amp;api_key=fd3b6b3731f34f55ba1fe3&amp;url=https%3A%2F%2Fwww.instagram.com%2Fp%2FDVZoZQJjti8%2F" frameborder="0" allow="autoplay; encrypted-media" allowfullscreen=""></iframe></div></div></div></figure>Criticism aside, the video sparked chatter at the perfect time, just ahead of the Big Arch Burger’s nationwide launch. The takes were all over the map, but the attention lift was real for both brands. These days, the burger wars don’t just happen at the counter — they happen in the feed.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

A viral video of McDonald’s CEO’s tiny bite sparks online jokes, brand rivalry and fresh buzz as the Big Arch Burger enters the fast-food battle.

How much can franchisees make? It’s a question many prospective owners ask before investing in a franchise. While earnings tend to be driven by variables such as industry, location and general management skills, a proper understanding of the key factors driving profitability can help franchise owners develop expectations that are realistic.&nbsp;Multi-unit franchisee&nbsp;<a href="https://www.linkedin.com/in/mangesh-patel-9368569/">Mangesh Patel</a>, who’s readying the launch of six&nbsp;<a href="https://www.beefobradysfranchise.com/">Beef ‘O’ Brady’s</a> restaurant locations in the Macon, Georgia area, shares insights from his franchising experience.<h2>Understanding Franchise Income</h2>Keeping operational costs in check can have a major impact on overall earnings. Taking a proactive approach to expenses such as food and labor, as well as payroll and scheduling, can help align actual franchise income with general expectations for the business.“I just had a meeting with a couple of people, and they said, ‘You talked about a 25% profit margin, but I’m only doing 12%.’ So, I looked at the figures they sent me,” Patel said. “Their&nbsp;<a href="https://1851franchise.com/calculate-restaurant-franchise-profit-2730476">restaurant</a> food cost was running at 37%, which should be around 30%. The national average is about 32%. If I do things correctly, my average food cost needs to be at or below 30%. And payroll should run around 18%. But many people run 25 to 28%.”So,&nbsp;<a href="https://1851franchise.com/unraveling-franchise-earnings-how-much-can-you-really-make-2723935">how much can franchisees make</a>? Here are five areas to consider.<h2>Practical Tips for Prospective Franchisees</h2><ol><li>Control Costs From Day One:&nbsp;It’s important to monitor payroll, food and supply costs closely. Overstaffing and inefficiencies can quickly reduce profits.</li><li>Plan For The Opening Surge:&nbsp;Traffic within the first few months of opening is likely to be higher. It’s important to adjust staffing and inventory accordingly, and pay close attention to how those levels change as time goes on.</li><li>Invest In Training:&nbsp;Properly trained workers can help reduce waste and improve overall service, which has a direct effect on net income.</li><li>Understand Your Market:&nbsp;Each market is unique and revenue potential will vary depending upon location, demographics and competition.</li><li>Track Metrics Regularly:&nbsp;Food cost percentages, labor ratios and weekly sales data act as key indicators operations may need to be adjusted.</li></ol><h2>What Profitability Really Comes Down To</h2>Patel notes that if franchise owners manage labor and costs properly, it’s not impossible to achieve strong cash flow even in the first year, bucking some franchising trends.So,&nbsp;<a href="https://1851franchise.com/how-much-can-you-make-as-a-franchise-owner-2724761">how much can franchisees make</a>? While results tend to vary, careful planning, disciplined operations and a proactive approach to assessing initial costs are essential. But by grasping and guiding the elements that drive franchise profitability, franchise owners can maximize overall business earnings, scaling a business that’s sustainable financially over the long term.Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our&nbsp;<a href="https://1851franchise.com/power-rankings">Power Rankings</a> to read more on brands making moves.

How much can franchisees make? This guide explains what drives franchise earnings and how to manage costs, with expert tips from multi-unit owner Mangesh Patel on maximizing your franchise income.

How Much Can Franchisees Make? A Guide for Prospective Franchise Owners

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Ellianos Coffee Franchise Costs, Fees, Profit and Data for 2025

Franchise Opportunity Deep Dive: A drive-thru specialty coffee franchise focused on speed, quality and Southern hospitality.

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Franchise Opportunity Deep Dive: A fast-casual restaurant brand serving made-from-scratch sandwiches, salads, soups and pizzas rooted in Southern hospitality.


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Window Genie Franchise - Deep Dive 2025 - 1851 Franchise

Franchise Opportunity Deep Dive: Window Genie is an owner-led, multi-service exterior cleaning brand with recurring demand and Neighborly backing that simplifies operations and supports growth.

What’s the Difference Between Licensing and Franchising?

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