Types of Franchise

It’s not just selling burgers in a box with someone else’s name on it. You need to know about all the different types of franchise out there on the market today. Don’t worry too much about this now, but it’s worth looking into, and it could help you decide how deep into the franchise you really want to go.

Solo Franchise

There are some relatively low paid, yet still quite profitable depending on your goals, that can be done on your own from home. These still rely on you delivering a product or service to someone following a strict set of rules set by the franchisor. However, this type of franchise is often victim to a lot of fraudulent businesses. Be aware of those who do not offer adequate training, charge large one off fees and refuse to pay you for what they call “substandard” products and/or services. Consult an expert about this if you are considering it.

Investment

An investment franchise is an easy option for someone who has lots of money and lots of faith in others; because basically that’s what it takes. If you are brave enough to take on a franchise and leave it up to someone else to run then an investment franchise could well be for you. You wouldn’t necessarily have any control over your business, and indeed you’d be pretty much in the dark about most decisions, but you would be more interested in the profit reports!

Retail Franchise

A retail franchise allows you to sell products directly from a store that is no doubt merchandised by the franchisor. There will be lots of involvement from your franchisor in this type of franchise and you can expect to be quite restricted with your ideas and options. However, having said that, you will be working from a proven business model, so if you are prepared to be told how to do it, and follow instructions, the profitability could be very good.

Distribution Franchise

A distribution franchise is not directly connected with the sale of the product. This means that contact with the customer is minimal and it’s ideal for those investors who are not “people” people. You will be primarily dealing with a distribution depot owned by your franchisor and you will only be distributing products approved by them alone. You will not be able to distribute any other products from your place of business.