Franchising in the context of "Fast-food restaurant"

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⭐ Core Definition: Franchising

Franchising is a business practice where a company licenses its business model to another company, or more precisely, where the franchisor licenses some or all of its knowhow, procedures, intellectual property and other rights to sell its branded products and services to a franchisee. In return, the franchisee pays certain fees and agrees to comply with certain obligations, typically set out in a franchise agreement.

The word franchise is of "Anglo-French" derivation - from franc, meaning "free" and it is used both as a noun and as a transitive verb.For the franchisor, use of a franchise system is an alternative business growth strategy, compared to expansion through corporate owned outlets or "chain stores". Adopting a franchise system business growth strategy for the sale and distribution of goods and services minimizes the franchisor's capital investment and liability risk.

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Franchising in the context of McDonald's

McDonald's Corporation, doing business as McDonald's, is an American multinational fast food restaurant chain. As of 2024, it is the second-largest by number of locations in the world, behind the Chinese chain Mixue Ice Cream & Tea.

Brothers Richard and Maurice McDonald founded McDonald's in San Bernardino, California, in 1940 as a hamburger stand. They soon franchised the company. The Golden Arches logo was introduced in 1953. In 1955, the businessman Ray Kroc joined McDonald's as a franchise agent; he bought the company in 1961. In the years since, it has expanded internationally. Today, McDonald's has more than 40,000 restaurant locations worldwide, with around one-quarter in the US.

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Franchising in the context of KFC

KFC Corporation, doing business as KFC (an abbreviation of Kentucky Fried Chicken), is an American multinational fast food restaurant chain specializing in Southern fried chicken and chicken sandwiches. Headquartered in Louisville, Kentucky, it is the world's second-largest restaurant chain (as measured by sales) after McDonald's, with over 31,980 locations globally in 150 countries, as of September 2025. The chain is a subsidiary of Yum! Brands, a restaurant company that also owns the Pizza Hut and Taco Bell chains.

KFC was founded by Colonel Harland Sanders (1890–1980), an entrepreneur who began selling fried chicken from his roadside restaurant in Corbin, Kentucky, during the Great Depression. Sanders identified the potential of the restaurant-franchising concept, and the first "Kentucky Fried Chicken" franchise opened in South Salt Lake, Utah, in 1952. KFC popularized chicken in the fast-food industry, diversifying the market by challenging the established dominance of the hamburger. By branding himself as "Colonel Sanders", Harland became a prominent figure of American cultural history, and his image remains widely used in KFC advertising to this day. However, the company's rapid expansion overwhelmed the aging Sanders, and he sold it to a group of investors led by John Y. Brown Jr. and Jack C. Massey in 1964.

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Franchising in the context of Royalties

A royalty payment is a payment made by one party to another that owns a particular asset, for the right to ongoing use of that asset. Royalties are typically agreed upon as a percentage of gross or net revenues derived from the use of an asset or a fixed price per unit sold of an item of such, but there are also other modes and metrics of compensation. A royalty interest is the right to collect a stream of future royalty payments.

A license agreement defines the terms under which a resource or property are licensed by one party ( party means the periphery behind it) to another, either without restriction or subject to a limitation on term, business or geographic territory, type of product, etc. License agreements can be regulated, particularly where a government is the resource owner, or they can be private contracts that follow a general structure. However, certain types of franchise agreements have comparable provisions.

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Franchising in the context of Ray Kroc

Raymond Albert Kroc (October 5, 1902 – January 14, 1984) was an American businessman who was instrumental in turning McDonald's into the most successful global fast food corporation by revenue. He purchased it from the McDonald Brothers in 1961, after several years as their franchising agent, and served as the leader of the company until his death.

Kroc was born in Oak Park, Illinois, and worked a variety of jobs, including as a paper cup salesman and a musician, before eventually becoming a milkshake mixer salesman. In 1954, he visited a hamburger restaurant in San Bernardino, California, owned by Richard and Maurice McDonald. Kroc was impressed with the efficiency and speed of the restaurant's operations, and he convinced the brothers to allow him to franchise the concept.

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Franchising in the context of Stripper

A stripper or exotic dancer is a person whose occupation involves performing striptease in a public adult entertainment venue such as a strip club. At times, a stripper may be hired to perform at private events.

Modern forms of stripping minimize the interaction of strippers with customers, reducing the importance of the tease in the performance in favor of speed of undress (the strip). Not all strippers are comfortable dancing topless or fully nude, but in general, full nudity is common where not prohibited by law. The integration of the burlesque pole as a frequently used prop has shifted the emphasis in the performance toward a more acrobatic, explicit form of expression compared to the slow-developing burlesque style. Most strippers work in strip clubs. A house dancer works for a particular club or franchise, while a feature dancer typically has her own celebrity, touring a club circuit and making appearances. Strippers are often not direct employees of clubs but instead perform as independent contractors.

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Franchising in the context of Coffeehouse

A coffeehouse, coffee shop, or café (French: [kafe] ), is an establishment that serves various types of coffee drinks like espresso, latte, americano and cappuccino, and other beverages. An espresso bar is a type of coffeehouse that specializes in serving espresso and espresso-based drinks. Some coffeehouses may serve iced coffee among other cold beverages, such as iced tea, as well as other non-caffeinated beverages. A coffeehouse may also serve food, such as light snacks, sandwiches, muffins, cakes, breads, pastries or donuts. Many doughnut shops in Canada and the U.S. serve coffee as an accompaniment to doughnuts, so these can be also classified as coffee shops, although doughnut shop tends to be more casual and serve lower-end fare which also facilitates take-out and drive-through which is popular in those countries, compared to a coffee shop or cafe which provides more gourmet pastries and beverages. In continental Europe, some cafés even serve alcoholic beverages, and it is popular in West Asia to offer a flavored tobacco smoked through a hookah, called shisha in most varieties of Arabic or nargile in Levantine Arabic, Greek, and Turkish.

While café may refer to a coffeehouse, the term "café" can also refer to a diner, British café (also colloquially called a "caff"), "greasy spoon" (a small and inexpensive restaurant), transport café, teahouse or tea room, or other casual eating and drinking place. A coffeehouse may share some of the same characteristics of a bar or restaurant, but it is different from a cafeteria (a canteen-type restaurant without table service). Coffeehouses range from owner-operated small businesses to large multinational corporations. Some coffeehouse chains operate on a franchise business model, with numerous branches across various countries around the world.

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Franchising in the context of Chain store

A chain store or retail chain is a retail outlet in which several locations share a brand, central management and standardized business practices. They have come to dominate many retail markets, dining markets, and service categories in many parts of the world. A franchise retail establishment is one form of a chain store. In 2005, the world's largest retail chain, Walmart, became the world's largest corporation based on gross sales.

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