Five different types of franchise
Whilst all franchises involve setting up a branch of an established brand, were you aware that there are a number of different types of franchise? Here we take a look at five different types of franchise that you may wish to consider. Each has its own set of pros and cons – why not have a glance and see which you like the look of?
Product franchise
This involves selling the products which a franchise creates, but normally leaves it up to the franchisee exactly how they market the items. Franchises like this typically have fairly low start-up costs and offer plenty of potential for creativity.
Business franchise
A business franchise is the set-up that most people think of when they consider a franchise. A business franchise includes a whole system for running the business successfully. As well as branding and marketing, there will be set parameters for products, customer care and even pricing. Restaurant franchises, for example, are usually business franchises.
Job franchise
Job franchises usually involve one individual and are usually fairly limited skill opportunities for lone workers. Equipment will be basic and low cost (so window cleaning franchises, cleaning franchises and similar will often be job franchises) and there are usually few on-going running costs to consider.
Conversion franchise
A different version of a good old-fashioned takeover, in some cases, a more successful business will buy out the competition, then re-brand it as a second branch of their existing business. This has the advantage of effectively removing competition at the same time as having the chance to turn a less profitable business around.
Investment franchise
Normally used for large-scale businesses, investment franchising is a type of business takeover. Typically investors will inject capital as well as management expertise in order to turn the franchise into a profitable option.
Ultimately, the type of franchise which is going to work best for you depends on factors such as previous experience; budget; interests; proximity of franchises to your current location; competition; and similar. Get in touch to find out more about the franchises which are available for you to consider.