# The franchise business model

URL: https://gocutline.com/business-models/franchise/

The franchise business model: other people pay to run a copy of your business under your name. Franchisees pay an upfront fee and a share of sales.

## How it makes money
Franchisees pay an upfront fee and a share of sales. In return, they get the brand, the system and training, which lets a business grow with other people's capital.

## Real examples
- McDonald's has most of its restaurants run by franchisees.
- Subway and many gyms and cleaning firms grow this way too.

## The numbers to watch
- Sales per location
- Franchisee profit
- Share of locations that close

## Who it fits
A local business that works and can be written down as a system.

## What goes wrong
Weak franchisees hurt the whole brand. Franchising is also tightly regulated in many countries.

## Try it this week
Write your whole operation down, as if someone else had to run it next week.

Then give it a time: one block of 90 minutes this week, in [your calendar](https://gocutline.com/#try). Our [playbooks](https://gocutline.com/playbooks/) have the next steps for finding your first customers.

## Questions

**What is an example of the franchise model?**
McDonald's has most of its restaurants run by franchisees.

**What is the biggest risk with the franchise model?**
Weak franchisees hurt the whole brand.

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Cutline: Cutline is a weekly calendar and planner that turns time blocks into XP, levels and streaks. You plan your week in blocks, tick each one off when it is done, and see your progress on a social feed (the Floor) and a weekly leaderboard (the Arena). Planning and budgeting are free; paid plans add a badge, posting, messaging, shared calendars and lower selling fees, from $9 a month. Pro is free to try for 7 days.
Facts: https://gocutline.com/facts/ · Updated 2026-11-06