McDonald’s area Franchise Company, a franchise is a company where an entrepreneur can opt to set up a new independent business and try to win customers. An alternative is to buy into an existing business and acquire the right to use an existing business idea. This is called franchising. Opening a franchise is but much less risky than opening a new retail because the customers are already basically there for you. An advantage of having franchise is that you have already got the brand name there for you at the very start of your business and you have don’t nothing. However if they end up getting a bad name because they have done something wrong the bad name follows onto you and you start losing profit because of this bad name the company you have bought into.