Franchise development has become a key method of business growth all over the world, which in turn has given rise to many entrepreneurs to run a business of their own without having to start from the beginning. We see a structured approach that franchisees profit from the brand name, training, and proven systems at the same time, which in turn brings to the franchisors a greater reach and higher revenues. What you choose between the various types of franchise is very important for success, which is true since each has its own set of rules, benefits and degree of independence.
- Product Line Franchise.
In this model, what we see is that the franchisee’s main role is that of distribution for the franchisor’s products. It is less about business management systems and more towards the sales of products. Auto dealers, soft drink companies, and oil distributors are typical players. What we find in these businesses, which often have large-scale inventory and strong brand presence, is that franchisees must have great skills in customer relations and sales. Also in this field, many individuals develop what may seem like a hobby — attending auto shows, market fairs, and trade shows, which they do to stay current with what the consumers want.
- Franchise Format Business.
The most common franchise model is the business format. In this type of franchise, the franchisor puts out the full business plan, which includes the product or service, marketing, training, and operations. Popular fast food chains and retail stores use this model. Also in this model, we see that franchisees get into structured training programs, brand-supported marketing campaigns, and large networking events. Also, many business owners get into community events, food festivals, and local business meetups to expand their networks and brand presence.
- Manufacture Franchise.
In the field of manufacturing franchises, the franchisor outsources licenses to the franchisees to put out into the market their brand of products in areas like food, beverages and clothing, which is very common. The franchisees do not develop these from the ground up; rather, they get the formulas, technology or processes from the franchisor. What makes or breaks it for the franchise models is quality control and consistency. Also, many of the franchise owners into which you put your leisure time may be developing new recipes, product designs, or packaging, which in turn keeps what they are doing relevant to what the customers want.
- Franchise Management.
Management of franchises is more of an oversight role, which doesn’t include direct service delivery. Franchisees run the teams, the systems, and the marketing, while the service is provided by employees. This is true in sectors like recruitment, cleaning, and logistics. Those who are into leading rather than doing it all themselves do very well in this structure. They are into leadership workshops, public speaking, or out there at business networks to grow their management skills.
- Investment Portfolio franchise.
The investment franchise model we see is a platform for individual and group investors in large-scale businesses. The franchisee puts in the capital and hires a management team to run the day-to-day operations on their behalf. We see this approach in hotels, large restaurants, and fitness chains. Also, in this group of franchisees are usually experienced investors looking to expand their portfolios. They may also be seen at financial seminars, watching market trends, or involved in philanthropic work, which they see as a balance to business and community development.
Final Thoughts
Franchise opportunities present many options for the entrepreneur based on a wide range of their skills and interests, and what they have in terms of capital available to them. In some cases, a more active role in everyday business goings on is what one may want out of a franchise, but also, people would rather be investors who sit back and watch things grow, which is also a fine choice. Also, personal hobbies and interests play a role in what will be the right franchise for an individual. For example, some may do best in the retail or food business because of a love for interaction with customers; at the same time, there are those who do very well in management roles, which is what a different type of franchise presents.
