What’s the Difference Between Corporate Owned and Franchised Locations?
I was chatting with someone recently who asked:
“What’s the deal with corporate owned versus franchised locations?”
It’s a great question.
And the answer is pretty simple — but worth unpacking.
Corporate Owned Means… Owned by the Company
A corporate owned location is one that the franchisor themselves owns and operates.
For example:
Maybe McDonald’s owns a restaurant right in Cincinnati.
Or a franchise brand like That 1 Painter runs a shop in Austin.
In these cases, the parent company is running the business directly.
They hire the staff, set the rules, and manage the day-to-day.
Franchised Locations Are Different
A franchised location, on the other hand, is owned by someone else.
That’s you, or someone like you, who buys the rights to open and run the business in a specific area.
You operate under the brand’s name, follow their systems, and get support from the franchisor.
But you’re your own boss.
You hire your own team.
You connect with your local customers.
You make sure the business runs well in your city.
Why Does It Matter?
Knowing the difference helps you understand how the brand operates.
Corporate owned stores can serve as:
Training grounds
Test sites for new products or services
Examples of the brand’s standards
Franchisees get to learn from these corporate locations and often benefit from the company’s direct experience.
But franchisees also have the freedom to run their business in their own community.
What It Means for You
If you’re thinking about buying a franchise, you might wonder:
Will the franchisor be competing with me?
Sometimes, yes.
Some franchisors own locations in certain key markets — maybe to keep a foothold or test new ideas.
Other times, franchisors focus solely on franchising and don’t own any stores themselves.
It’s good to ask about this upfront.
So… What’s the Difference Between Corporate Owned and Franchised Locations?
It’s all about ownership.
Corporate owned means the franchisor owns and runs the store themselves.
Franchised means an individual business owner (like you) runs it under the brand’s system.
Both play important roles in growing the brand and serving customers.
And knowing the difference helps you understand the landscape — whether you’re shopping for a franchise or just curious about how big brands operate.
*This is not an offer to sell a franchise. Franchise offerings are made only through the delivery of a Franchise Disclosure Document (FDD)*
