---
title: "How Does a Business Become a Franchise?"
url: https://burnaze.com/article/752d3da1-a256-494f-8cd7-20fd87b55a14
source: "1851 Franchise"
original_url: https://1851franchise.com/how-does-a-business-become-a-franchise-2715228
category: "Franchise Industry"
industry: "Franchise Industry"
topics: ["Emerging brands"]
published: 2021-03-11T20:15:00.000Z
modified: 2026-11-01T01:35:42.810Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/716c8d170116ed8d1d05b90d7e1d6b319140.jpg
---

# How Does a Business Become a Franchise?

**TL;DR:** A business becomes a franchise by filing a Franchise Disclosure Document and selling the concept to other entrepreneurs. Entrepreneurs choose to franchise businesses to raise capital and grow market share.

*originally published in 1851 Franchise on 2021-03-11. [Read the original](https://1851franchise.com/how-does-a-business-become-a-franchise-2715228).*

## Story

A business becomes a franchise by filing a Franchise Disclosure Document and s elling the concept to other entrepreneurs who agree to follow the business model and pay fees and royalties to the franchisor .

But a business doesn’t get to that point without first proving itself in the marketplace and then painstakingly documenting every process, vendor, tip, trick and best practice that made it successful.

Typically, businesses that become franchises seek consultants who can help them create operational manuals and training systems for their business. Websites like Franchisegenesis.com can provide free quotes and books like “ Franchise Your Business: The Guide to Employing the Greatest Growth Strategy Ever ” can help tremendously in this regard.

A business needs to have strong growth and sales to franchise. Additionally, the concept can’t be so unique that it won’t work in other areas.

Entrepreneurs choose to franchise businesses to raise capital and grow market share. With a perfected concept, an entrepreneur can rake in cash from franchise fees and royalty payments in exchange for training another business owner to meet their standards.

For prospective franchisees, buying a franchise provides a path to business ownership that’s significantly derisked because the existing franchises have already proven the business concept’s worthiness.

## Entities

- 1851 Franchise (publication)
- Franchise Industry (sector)
- Entrepreneur (publication)
- franchise model (topic)
- business growth (topic)
- franchising process (topic)
- Franchise Disclosure Document (regulator)

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Originally reported by 1851 Franchise (https://1851franchise.com/how-does-a-business-become-a-franchise-2715228). Summarized by Burnaze (https://burnaze.com/article/752d3da1-a256-494f-8cd7-20fd87b55a14).