Franchising is generally a safer way of starting a business in case the franchisees are a bit wary of venturing into an own business. There are several types of franchising available to a potential franchisor. Some of the more important types of franchising include:
1. Internet franchising: Involving the selling of either goods, services or advertising on the Internet, this franchise requires a huge amount of dedication and knowledge to attract sufficient customers. 2. Service Franchises: Ranging from providing financial services to coaching and business advice, this business suits people who can do a lot of selling and who prefer to be customer facing. 3. Retail Franchises: Characterized by high entry costs and huge overheads, retail franchises are extremely profitable if the location is right. 4. Business Format Franchising: This occurs when a franchisor grants the franchisee with the license to use a business idea. The franchisee in return, pays an initial fee to the franchisor and subsequently a percentage of the sales revenue. 5. Automotive: To invest in an automobile franchise, it is not necessary to be an automotive enthusiast. Most car dealerships, gas stations, oil, break; muffler, tire and transmission shops are franchises. 6. Food: Food businesses operate longer hours, have large staffing demands and are among the largest investment of any category. Although expensive, they promise good returns.
Mature franchises are generally safer than new ones but it is in the hands of the franchisee to delve into the options available and choose a business that will prove to be a success for them.