Franchise Glossary
Company-Owned Location
What is Company-Owned Location in franchising?
A franchise unit owned and operated directly by the franchisor's corporate entity rather than by an independent franchisee. The ratio of company-owned to franchised locations tells you something important: a franchisor with significant company-owned stores has direct skin in the game and operational credibility. Conversely, a system rapidly selling off its company-owned locations may signal financial distress or a shift in strategy. Check Items 1 and 20 of the FDD for this data.