What Franchise Type Best Suits You?
Posted on: 08/08/2012
Because there are various different types of Franchises you could operate it’s worth keeping an open mind before making your final decision.
Depending on your background your previous experience and skills it’s important to think about what you want to achieve in the future. For example if you have grand career ambitions then perhaps a small Franchise operation may not suit you long term.
Here’s a breakdown of each Franchise type to give you greater insight if it will suit your needs, now and in the future.
Single Operator Franchise: Probably the one you’re most familiar with during your research. A Franchisee buys the rights to operate a Franchise which could be home based, single van operated or ran from a small office. There may be the opportunity for expansion to employ staff in the future, but not always. Single operator Franchises usually involves offering a one or more services: *Children’s activities *Cleaning *Outdoor maintenance *Health/Beauty
Retail Franchise: A Franchisee sells products or services from a retail premises such as a shop during trading hours for ‘walk in’ customers. The majority is through passing trade but to survive long term most also have to adapt to some sort of online trading, depending on the type of product or service. You’d expect to see this type of Franchise positioned on the High Street or in a Retail Park and must be suitably equipped and staffed: *Fashion *Food *Health products *Cosmetics
Management Franchise: As the name suggests a Franchisee assumes a management role and is responsible for the development of the business. This will include the management and coordination of employees and possibly a number of territories or region. Typically the operation will be mainly business to business: *Commercial cleaning *Property restoration *Recruitment *Consultancy
Executive Franchise: Typically known as white collar Franchises where a Franchisee provides consultancy services to different sectors such as project management, legal services, etc. Perhaps one of the unexpected aspects of this type of Franchise is that it doesn’t require large premises or retail outlet, often Executive Franchisees are home based or at client premises: *Expense Management *Accountancy *Training *Sales coaching
Investment Franchise: A much higher cost than other options where the Franchisee invests a considerable amount of capital. The Franchisee would normally not have a hands-on role but employ a team of managers to operate on their behalf and manage staff and the day-to-day business activities: *Restaurant Franchises *Hotel chains *Property
Master Franchise: A Master Franchisee agrees to duplicate the original Franchise in a complete region, country or collection of countries. They’ll be granted a Master Franchise Licence to open a number of outlets, which are then Sub-Franchise the brand throughout the designated regions or countries. Because of the nature and level of responsibility and investment require, this is generally only awarded to experienced professionals after successful submission of a comprehensive business plan that aligns with the original Franchisor’s vision: *Food chains *Senior care *Domestic cleaning *Property
Annette Du Bois -- The Franchise Growth Expert Copywriting, Marketing & PR Support For Ambitious Franchisors, http://www.franchisegrowthexpert.com © 2011 and beyond Annette Du Bois. All rights reserved.
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