Types of Franchises and Sectors
Almost everyone is aware of what franchising is. However, the question that arises next is, what types or sectors are there? Before one starts looking at opportunities of franchising, one must do a proper research and identify, which type would suit him/her, and accordingly take the decision.
Following are some franchise types:
Retail Franchise In this kind of business, retail premises are occupied by the franchisee and used for selling products or services during retail hours. This business completely depends on the premises and the turnover is achieved from walk-in consumers. Examples of retail franchise sectors include food, fashion and more.
Management Franchise Under a management franchise, a franchisee has to be experienced in order to grow the business and control staff that fulfils daily tasks. Office-like premises would be required for carrying out such business and the majority of the turnover is generated from business to business activities. Examples include parcel delivery type of franchises or other van based service franchise and more.
Single Operator Franchise Also known as a job franchise, this single operator franchise allows the franchisee to buy the right to franchise which usually takes the form of a trade supplying, selling and delivering products or service. The work can be mobile, home-based or may require small office premises. Examples of business sectors would include cleaning, motorist services and repair/security system.
Investment Franchise Lastly, there is an investment franchise. In such a deal, a franchisee invests a significant amount of money in the business sector and works closely with the franchisor, and also employs a management team to operate the business. Examples include major hotels and restaurant franchises.
Franchising offers aspiring, new business owners one of the best possible chances of succeeding with least amount of risk and choosing the right sector makes the task of running the business easier.