What Are the Different Types of Franchises? | VetFran
Any time you are in a transitional phase, it can be hard to know what is to come next. Especially when coming from a military career, you might be wondering where your skills might be best used.
Fortunately, there are many avenues you can take—one of which is franchising. Our team at VetFran wants to share some details about the various types of franchises so that you can get a better idea of what journey might be best for you. Read on as we take a look.
The Big 3
Franchising is a great way to jump into an entrepreneurial role with a business model that has already been shown to be successful. In addition, being a franchisee allows you the ability to run your own business while also having the support of the franchisor. Therefore, you don’t have to feel like you are alone, especially when obstacles appear.
There are three main types of franchises:
- The business format franchise
- The product distribution franchise
- The management franchise
Let’s take a deeper dive to see which type of franchise you might be best suited for:
The Business Format Franchise
When you hear about a franchise or joining a franchise, you more often than not are hearing about the Business Format franchise. Within this type of franchise, the franchisor gives you (the franchisee) the rights to trademarks, business processes, trade names, etc. Anything related to the business is yours when you join as a franchisee under this franchise type.
A benefit of choosing this type of franchise is that you are given a strong support system that can assist you by not only offering advice but also by providing you the proper training, which can give your chance of success even a bigger boost in the end.
The Product Distribution Franchise
Most Product Distribution franchises occur within larger brands and products, such as Coca-Cola and/or the Ford Company. When a franchisee invests in this type of franchise, he or she is a little more independent from the franchisor than the aforementioned franchise type. However, the franchisee has to pay fees in order to use trademarks, etc.
In some cases, with this type of franchise, the franchisor licenses part of the manufacturing process in addition to distribution.
The Management Franchise
Do you see yourself in more of a manager role? Then the Management franchise might just be the perfect option for you!
When a franchisee invests in this type of franchise, he or she is basically taking on more of a manager role. The franchisee doesn’t have to be as involved in the day-to-day running of the business as the other types do, but you will still need to pay fees when it comes to the use of trademarks.
However, your focus is more on the business development side of things, which makes it perfect for those who have experience in a managerial role!
Are you interested in franchising? Visit VetFran today to learn how you can get started finding the perfect franchise for you!