Three types of franchise opportunities
If you are planning on buying a franchise, then there are a few things you need to bear in mind about the franchise options of business ownership. There are a few things you need to be familiar with and learn before you narrow down your options.
Franchises break down into three main types:
• Product franchise This is a great way for manufacturers to be in charge of how a seller gets their product out onto the market. The producer gives the franchise its consent to distribute the product and lets the owner of the retail firm to use that brand name and trademark to promote and build the trust of the customers. Many products in the market are trend based and revolve in cycles. Every franchise business needs to take into consideration the likes and dislikes of its consumers. • Business format franchise This is a very popular type of franchise. The company usually gives the franchisee not only a great system in which to run the business, but generally also lets them use the trademark and name of the parent company. As these business brands are usually established, the franchise automatically gains the trust of the customers which can turn out to be a great advantage to the business format franchise. • Manufacturing franchise Manufacturing franchises are area where big money comes into play. This type of franchise usually gives a group or organisation the right to make or manufacture a certain product, in addition to giving them the ability to use the name and trademark for marketing and promotion purposes.