Calling all entrepreneurs! Do you want to start a small business? You can become your own boss.
It can become a reality through franchising. This is a route you can take with almost any type of business.
It’s a method that several celebrities take to build their business portfolio. If you want to franchise, you must know about the different types of franchising. Read on to learn about the franchising options available.
A job franchise is an option for a person who wants to start a small franchised business alone. The person can run it on their own or with minimal staffing. This means that five or fewer employees can work for the franchisee.
This is a low-investment franchise. The franchisee only pays a franchise fee.
Covering minimal startup costs is also a must. These costs can include equipment and basic materials. In some cases, the franchisee might need to buy a vehicle.
Different types of industries can be franchised this way. Examples include plumbing and cleaning services.
There exist unique industries worthy of consideration. For instance, if you love animals, you can train canines through a pet franchise or venture into home improvement by joining a franchise focused on flooring installation. Ensure you do proper research while keeping your interests in mind.
A product franchise is product-driven, hence the name. Also known as a distribution franchise, it’s built on a supplier-dealer relationship.
The parent company gives the franchisee products to distribute. The parent company may also provide other related services.
The franchisee can use the parent company’s branded trademark. The franchisee will not receive an entire system to run the business.
A small business owner who takes this route might work with a large product dealer. Examples of product franchising are car and tire companies.
Business Format Franchise
One of the most popular types of franchising is business format franchising. Under this format, the franchisee can use the franchisor’s trademark. The franchisee will get an entire proven system to operate the franchise.
The franchisee is empowered to market the products or services. The parent company provides a detailed plan for this. The franchisee will also receive resources to succeed.
This is an ideal option for entrepreneurs who want to focus on business ownership. Examples of this type of franchise include fast food restaurants and retail stores.
Can you make a large capital investment? If you can, you should consider an investment franchise. This is a good option for those who want to focus on operating a large-scale business.
As a franchisee in this type of investment, you’ll have to provide two things: money and a business management team. The focus of investment franchising tends to be on producing a return on investment.
Want to learn more about franchising and how to grow your franchise? Read this to learn more.
These Are the Different Types of Franchising Options
Not all franchises are the same. As you read, there are different types of franchising options. Pick the best franchise method that meets your vision.
Make sure to explore the rest of our blog to read more marketing and business articles.