Planning a Profitable Franchise Territory February 5, Before opening a franchise in any area, it is necessary to do proper franchise territory planning. Franchising is all about expansion of a company or business.
Check new design of our homepage! Are you also planning to open up a franchise business? Do you know there are several types of franchise businesses? Find out more about them, here, before you make a decision to buy one of your own.
BusinessZeal Staff Franchises are one of the most popular forms of business. It is very important that a franchise owner maintains the quality of products or services as per the standards laid out by the franchisor. By opting for a franchise business, the franchisee earns the right to sell an already successful product or service owned by a business and, thus, becomes a part of it.
First, if you are not already familiar with two most commonly used terms in the business of franchise, let me explain. It also owns the rights and licenses for the product or service. It agrees to grant a franchise to the franchisee in return for an initial start up fee and a subsequent monthly fee.
Types of Franchise Businesses There are different types of franchise business planning that you can choose from. Take a look at the table below to decide which would be the most suitable type of franchise business for your needs and requirements.
But, first let's classify these different types of businesses based on different characteristics. By Operational Structure Manufacturer Franchise Common in the food and beverage industry, adopting such a type of franchise business allows the franchisor to manufacture the product in his factory under a license as per the franchise contract.
He also sells the products using the franchisor's trademark and company name. Apart from a franchising fee, the franchisor may also charge a fee on per unit product sold. Manufacturer franchises are prevalent in the beverages industry and petroleum industry.
Product Franchise The franchisee is not allowed to produce the product but can only acquire them from the franchisor who has full control of the distribution method of the product adopted by the franchisee.
The franchisee must pay a certain amount of fee to take benefit of the franchisor's brand name, reputation among consumers and trademark.
Also, in some cases, the franchisee is required to promise to buy a certain minimum amount of inventory from the franchisor. Such a type of franchise business is popular between manufacturers and retailers. A product franchisee functions are limited to only the sales and distribution of products and services.
Business Format Franchise This is one of the most popular types of franchises. The franchisee is given a proven business model developed and owned by the franchisor. He is also given assistance to provide training to employees, installing machinery and setting up the business overall. However, the franchisee has to pay a royalty fees.
Also, the franchisor may provide raw materials and maintenance of machines at subsidized rates. Examples of such a type of franchise business are jewelry stores and apparel brands. Business Franchise Venture A franchisee who owns a business franchise venture distributes products or services, on behalf of the franchisor, to a certain customer base, provided by the franchisor, to maintain its customers.
The franchisee gets a certain percent of sales as a commission.Before opening a franchise in any area, it is necessary to do proper franchise territory timberdesignmag.comising is all about expansion of a company or business.
It is a profitable business model that depends on how the plan is done for the development which determines its success. Franchise Business Review: The leading independent market research firm specializing in benchmarking franchisee satisfaction.
[FREE PLANNING TOOL] Research Supplier Checklist This handy checklist is a free tool to help you compare the services and benefits of survey providers - either internal or third-party - to make sure you’re getting the.
Event Planning Business Franchise Magic Day Luxury Experiences is a unique event management brand that currently unites seven leading event and wedding planning companies operating in 15 European countries. The Franchise Business Plan involves the development of a comprehensive business plan proposal to buy into an existing franchise.
Participants in the Franchise Business Plan will: • prepare a written proposal for becoming a franchisee • present the proposal in a role-playing interview.
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