If you are considering getting involved with franchise ownership, there are several different methods of ownership that you could choose. All of the different types of franchise ownership opportunities can provide you with some unique benefits as a business owner. Here are some of the different types of franchise ownership opportunities that are available.
1. Single Unit
The most common type of franchise ownership is the single unit franchise. With this type of ownership, you will become the owner of a single franchise location. This type of franchise ownership has the lowest initial start-up costs. It will also have more affordable ongoing costs than some of the other franchising methods. This type of franchise ownership is ideal for individuals who are just getting started in business. With this model, you can manage the location personally and handle all of the day-to-day business operations personally.
2. Existing Franchise
Another opportunity that you could choose to pursue is purchasing an existing franchise. With this arrangement, someone else has already purchased the franchise initially from the company. She has started the business and established it successfully in the region. Buying an existing franchise can provide you with a great deal of safety. With this model, you already know exactly what to expect from the business. There are fewer unknowns for you to worry about.
3. Multi-Unit Franchise
You could also choose to get involved with a multi-unit franchise. With this opportunity, you will open several stores within a short period. When you do this, you will generally be able to save money on the price of each unit. In order to make this work, you will have to oversee the entire operation and delegate responsibilities to individual managers. This type of franchising has the ability to increase your odds of success because you are spreading out over a particular geographic region and increasing sales.
4. Area Developer
The area developer is another type of franchising agreement that you could enter into. This is basically the same thing as having a multi-unit agreement except that it is on a much bigger scale. You will have a large geographic region and will be tasked with the responsibility of opening many locations at the same time. This strategy is used by franchisors that want to expand into a particular market very quickly. This strategy can increase market penetration and increase your odds of success. In order to get involved with this type of franchise ownership, you will need to make a very large initial investment.
5. Master Franchise
A master franchise is another type of franchise arrangement that you could get involved with. With this method, a franchisor will give you the rights to a large geographic region. With this business model, you will be an intermediary between the individual franchisees and the franchisor. You will pay a large fee to the franchisor for the region, and then you will collect the franchise fees from the individual franchisees. You will oversee your entire region, but you will not actually be the owner of each location.