When a business owner works with an established business such as a McDonald’s® or a Motel 6® , it falls under one of two categories: franchise or corporation. There is a difference in how someone owns such a business. Before anyone decides to undertake a restaurant franchise or corporation, it is essential to understand the difference and know what comes along with each.
FRANCHISE
Running a franchise typically gives the business owner a bit more leeway in how they run the company. The business owner purchases the right to run a local business with the company brand name. The local business usually needs to meet some set standards, including look, menu items, advertising and uniforms, but the owner can change some services and features. For instance, franchisees can add local dining favorites, include features others do not have (such as Wi-Fi or televisions) and potentially use different product providers. Owning a franchise is more or less the stepping stone between running an original business and a corporation.
CORPORATION
A corporation provides more in the way of liability protection. The corporation needs to register within a state’s business office and file annual reports. A restaurant that is part of a corporation has very little in the way of wiggle room. The owner must carry out just about every action identically to the next restaurant under the corporation. Running a corporation is fine for someone who wants to work with an established brand without having the ability to adjust how it operates. The franchise option provides more freedom than that of a corporation. For business owners interested in an established franchise, Samurai Sam’s® has brand new franchise ownership opportunities throughout the United States.
©2017 Kahala Franchising, L.L.C. All rights reserved. All other trademarks referenced are property of their respective owners. The information provided herein is for informational purposes only and is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise; nor is it directed to the residents of any particular jurisdiction within the U.S. or elsewhere. The following states currently regulate the offer and sale of franchises: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, and WI. If you are a resident of one of these states, or of a jurisdiction that has similar requirements, we will not offer you a franchise until we have completed the applicable registration or obtained the exemption from registration, and completed the applicable disclosure requirements. Regardless of what state you reside in, an offering can only be made by a franchise disclosure document.
