Any kind of business can be franchised because it is a pretty flexible strategy. There are many distinct types of franchises, and they can be divided into groups based on a variety of criteria, including the level of investment, the franchisor’s strategy, operations, marketing strategies, and relationship models. Job franchises, product franchises, business format franchises, investment franchises, and conversion franchises are the five main categories of franchises.
CAREER FRANCHISE or JOB FRANCHISE
Usually, a person who wishes to launch and manage a small franchised business alone chooses a home-based or low-investment franchise. Franchisees often need to invest in a small amount of stock, equipment, and perhaps a car. A wide and diverse range of services falls into this group, like travel agencies, coffee vans, domestic lawn care services, plumbing, drain cleaning, commercial and domestic cleaning, cell phone accessories and repair, real estate service, shipping service, pool maintenance, corporate event planning, children’s services, etc.
FRANCHISE FOR A PRODUCT (OR A DISTRIBUTION) or PRODUCT (OR DISTRIBUTION) FRANCHISE
Franchises that are product-driven are built on supplier-dealer partnerships, where the franchisee sells the franchisor’s goods. Although the franchisor often does not give franchisees a complete operating system for their business, it does license its trademark. Large products like automobiles and auto repair parts, vending machines, computers, bicycles, appliances, etc. are the focus of most product franchises. Franchises for product distribution account for the largest share of total retail sales. Exxon, Texaco, Goodyear Tires, Ford, Chrysler, John Deere, and other automakers are some well-known product distribution franchises. Franchise owners will occasionally grant licenses for not only distribution but also a portion of the production process, as is the case with the makers of Coca-Cola and Pepsi soft drinks.
FORMAT FOR BUSINESS FRANCHISE or BUSINESS FORMAT FRANCHISE
In addition to using the franchisor’s trademark, the franchisee also gains access to the whole system for running the company and promoting the good or service. The franchisor provides initial and continuous training as well as assistance, as well as a comprehensive plan and processes for practically every area of the firm. business style While discussing franchise systems, franchising is typically brought up as the most well-known sort. Franchise opportunities exist in more than 70 different industries, with fast food, retail, restaurants, business services, fitness, and other sectors being the most common.
FINANCIAL FRANCHISE or INVESTMENT FRANCHISE
Normally, they are large-scale ventures which demand a large capital investment, such as hotels and larger restaurants. Franchisees often invest money in the firm, hire either their management team or the franchisor to run it, and then sell it for a profit.
TRANSFORMATION FRANCHISE or CONVERSION FRANCHISE
A change from typical franchise arrangements is conversion franchising. Many franchise networks expand by turning independent companies operating in the same sector into franchise units. Franchisees embrace brand names, marketing and advertising strategies, a system of training, and crucial client service standards. They typically boost procurement savings as well. With this arrangement, the franchisor has the potential for very rapid unit and royalty fee revenue development. Real estate agents, florists, businesses that provide professional services, and home-service providers including plumbers, electricians, and air conditioners are a few examples of industries that frequently use conversion franchising.
