The biggest difference is the cost of establishing and operating the business. With a franchise, there is a significant franchise fee paid up front and then ongoing royalties and advertising fees (see table below). The parent company keeps very tight controls on every aspect of your business but they also provide a lot of assistance in the management and marketing of your store. With licensing, there is a modest, one-time, licensing fee paid up front but there are no royalties, and therefore, you do not have to report earnings to FBS.
LOW START UP COST
In a licensing arrangement, you have more freedom in the operation of your business than with a franchising situation, but also more responsibility (there is also more risk and potential reward). You have the freedom to set your own hours, charge whatever prices you want, set your own employment policies, etc. The only requirements are that you purchase FBS ingredients Seasoned fish fry batter, Employee uniforms and imprinted items (boxes, bags, and cups with the FBS logo printed on them) through a designated FBS distributor. You must also make sure that your signs and marketing materials meet trademark specifications. That’s all there is to it. It is, however, your responsibility to know how to manage and market your restaurant business; FBS provides you with the training necessary for you to produce a quality product but not how to run a business, unless requested.
Whereas some fast-food franchises cost more than one million dollars to get into, a FBS store costs as little as $80,000 to establish a planned restaurant, even less for an existing one. This allows the “small guy” access to a successfully established product with a 20 year track record. Our relatively low start-up expenses have attracted hard working entrepreneurs with limited financial means, and because of this, 90% of FBS owners are minorities, whom many have achieved a high level of financial success. FBS competes directly with the large fast food franchises.