Different kinds of franchises in the UK
The franchising industry continues to grow as the number of people taking on franchise opportunities steadily increases. This means that now, the franchising industry plays a really important part in the UK economy. But it’s not just the economy benefitting, it’s the people involved in the franchises too.
Before investing in a franchise, you need know that there are four main models to consider.
Manufacturing franchises – The franchisors allow the franchisees to manufacture products. The franchisees can also sell products under the franchisor’s brand name and trademark. This kind of franchising is commonly seen in the food and beverage industry.
Business franchise ventures – This type of franchise allows the franchisees to purchase and then distribute products. In this kind of franchising, the franchisor provides the customer base to the franchisee.
Product franchises – With this model, the franchisor or company use the agreement as a method for distributing their products in the market. Under product franchises, the franchisors sell the rights to the franchisees to sell products under their brand name. For this, the franchisees need to pay some fees and purchase a minimum amount of products.
Business format franchises – This is one of the most complex types of franchises as it involves a broader relationship between the franchisee and the franchisor. In this method, the franchisees need to pay the fees to purchase the operating processes, products and brands of the business. In return for the fees, the franchisors need to provide training and support.
With so many different models available, you can invest in the one which suits your needs and your aims the best.