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Types of Franchise

Franchising Retail Franchise In this franchise format, the franchisee carries out the work him/herself. This usually involves the carrying out of a trade, or the selling and supply of products or services. It may be a mobile set-up and could be home-based or operated from small office premises.

Single Operator Franchise Manual In this franchise format, the franchisee carries out the work him/herself. This usually involves the carrying out of a professional service or the selling and supply of products that require professional input and/or user-support and troubleshooting. The business could be home-based or operated from small office premises.

  • Work from home or have small office premises but essentially be mobile.
  • Work regular office hours, at least most of the time.
  • Deal mainly with businesses, but sometimes with the public as well.

Single Operator Franchise Executive In a management franchise, the franchisee is expected to market and manage the business while trained staff carries out the actual business activity.
A good example of such a business is a plumbing repair franchise. Orders are obtained via the telephone and trained repair teams carry out the work at customers’ premises. Many business-to-business activities are handled in a similar manner, except for the fact that a travelling sales force will be employed. In this situation, the franchisee will:

  • Be selling a product or perform a service, on occasion a combination of the two.
  • Need premises located in an office block.
  • Employ and manage skilled staff.
  • Deal mainly with businesses, to a lesser degree with the public.

The franchisee needs to be able to handle this effectively.

Management Franchise This term means that a wealthy investor, often a corporate entity, makes a substantial investment in a franchise without having any intention of working in the business. Management of the franchise will be delegated to an executive team that is responsible for day-to-day operations. This format is used, for example, in the hotel business. It is not very popular with franchisors of smaller concepts. The reason for this is that the physical presence of the owner “behind the counter” is what customers want. Experience has also shown that the owner’s presence makes the business successful.

Investment Franchise In a retail franchise, the franchise will generally occupy retail premises and sell products or services. The business depends totally on the location of the premises, with sales coming from walk-in consumers. In this situation, the franchisee will:

  • Sell a product or service to end-users.-They will operate from locations.
  • Depend on walk-in customers for sales.
  • Be dealing with the public.
  • Work on his/her own, at least initially.
  •  Deal with the public as well as with businesses.
  • As the business grows, it may become necessary to employ staff and the franchise could develop into a management franchise. -On occasion, such franchisees may be required to wear a uniform that reflects the network’s corporate identity.

By: Gökhan Emre Eren, http://prezi.com

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