How Does a Franchise Work? Understanding the Ins and Outs of Franchising

How does a franchise work? Moran Family of Brands is ready to help you learn more about franchising and what you need to know if you're thinking about becoming a business owner.


Franchising gives people with an entrepreneurial spirit the opportunity to launch a business with less risk and high potential rewards. Franchisees pay a fee to purchase the right to use a brand’s name and business system. They get a business with a proven track record of success and brand recognition.


When most people think of franchising, they envision French fries from McDonald’s, a bucket of KFC’s secret recipe chicken, or Olive Garden’s bottomless basket of breadsticks. Restaurants account for less than 30% of franchise businesses, and there are a wealth of other opportunities in a variety of industries to explore, including home remodeling, senior care, business consulting, and auto repair. There are more than 774,965 franchises in the U.S. representing nearly 300 industries. Franchises were forecast to generate $826.6 billion in 2022 and end the year employing 8.4 million people, according to the International Franchise Association.


Types of Franchises

Franchising is typically divided into three different categories: product franchise, business format franchise, and job franchise.


  • Product franchise – A product franchise is a supplier-dealer business, and the franchise owner usually conducts product distribution, such as tires or cars.


  • Job franchise – A job franchise is a low-investment, owner-operator business. Many job franchise owners do business from a home office or mobile van. Job franchises allow owners to make their own schedules and offer a high-reward opportunity with a low initial investment.
  • Business format franchise – A business format franchise is the most common type of franchise. It uses the franchisor’s trademark, business processes, and marketing. The franchisor also provides ample training and support to help the business flourish. Moran franchises six business format franchises in the aftermarket auto and window tinting industry, including Milex Complete Auto Care, Mr. Transmission, and Turbo Tint. We provide investment franchise opportunities and convert existing businesses to our brand.


Like any business, franchise owners generate income from the profits their business earns. Franchise owners are required to pay a royalty fee to the franchisor on an annual basis for the use of their trademarks and brand. Many owners also pay a marketing fee. The Franchise Disclosure Document, or FDD, provides a detailed picture of the business and its practices.


Understanding the Franchise Process

If taking a less risky approach to entrepreneurship sounds appealing, the first step you need to take to learn how a franchise works is to determine your financial and lifestyle goals. Understanding your goals will help you find a business model that meets your needs.


Once you have a solid grasp of your goals, finding out how a franchise works is the next step. It’s important to become familiar with the franchise process as you explore opportunities. Most franchisors offer a similar multi-step process before signing a franchise agreement. Moran relies on a six-step discovery process for prospective partners.


  1. Gather info. Explore our website to gain some insight into the company’s history and mission. Fill out Moran’s online form to request more information and gain access to a virtual brochure providing details about its brands.
  2. Program review. Moran provides comprehensive information about the aftermarket auto industry and how our franchise is uniquely positioned to serve customers. We help our franchise owners offer customers a one-stop shop for all of their auto repair needs by focusing on co-branding.
  3. FDD review. Before deciding to partner with Moran, you’ll want to review our latest FDD. In it, we provide an overview of our total startup costs and royalty fees. We also provide a historical financial overview of our locations, including gross revenue and cost of goods sold.
  4. Support review. Moran prides itself on providing our franchise owners with the support and service updates they need to serve customers. As part of this step, we’ll talk about the support we provide such as site selection, marketing, operations, technical, recruiting, and training.
  5. Validation. One of the advantages of franchising is having access to a network of peers to learn best practices and provide insights to flush out your business plan. During validation, you’ll have the opportunity to consult some of our existing franchisees to learn more about their operations.
  6. Decision Day. On Decision Day, you’ll travel to our corporate headquarters to meet our team. During that time, we will discuss our expectations and provide answers to your questions. It’s important to partner with a company that shares your values and goals. Moran is looking for partners who are driven, collaborative, and open-minded. Picking a franchise business that will allow you to leverage your past experience and provide a legacy for future generations is important.


Pre-Opening Prep

Once you sign a franchise deal, the real work begins. Your franchisor will provide guidance and support as you shop for real estate. You’ll attend training at the company’s corporate headquarters. Most companies include field training at an existing location to make sure you’re prepared when your business opens. Hiring employees, securing equipment, obtaining licenses, and rolling out marketing needs to be done before you open your doors to serve customers.


Open for Business!

Most franchisees have a soft opening to iron out any kinks before their grand opening celebration. After your location is up and running, franchisors provide ongoing support and guidance to help you stay up to date on new developments in the industry and continue to provide a solid customer service experience.


Learn More About Moran

The aftermarket auto industry is forecast to generate $372 billion in the U.S. in 2024, according to Statista, a market research firm. Moran has more than 32 years of experience in franchising and is focused on creating new opportunities for business owners. The company launched Turbo Tint, an automotive window tinting brand, at the height of the pandemic in 2020. Turbo Tint now has nine locations and agreements in place to add 40+ units.


Ready to learn more about how a franchise works? If you’re interested in exploring a franchisor with a rich history and progressive business strategies, request information to learn more about opportunities with Moran.


They consistently follow our company’s vision and mission, and fulfill their responsibilities in that role.


People who are polite and well-mannered toward their customers and employees, who go out of their way to make sure others are being treated well.


They uphold the highest standards in ethics and authority, ensuring that the customer’s interests come before their own.


These individuals always look to the future, seeking out ways to improve both themselves and the franchise they run.


They enjoy the work they do and the mission and vision of our company.

Get in Touch with Us!

Interested in franchise? Let’s get the conversation started. Let Moran Family of Brands know how they can help you.

Moran Family of Brands is committed to ensuring effective communication and digital accessibility to all users. We are continually improving the user experience for everyone, and apply the relevant accessibility standards to achieve these goals. We welcome your feedback. Please call Moran Family of Brands (800) 377-9247 if you have any issues in accessing any area of our website.