11 May 2015
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Types of Franchises

You are at the stage in your business where you have decided that you are going to franchise your business. The next part of the growth movement is to determine what type of franchise you will be selling.

The basic types include the subfranchise, the multi-unit franchise, and the individual franchise.



For business with a lower cost (investment and annual sales of $150,000 or less) that decide to institute a market saturation strategy, subfranchising might be the only answer. By selecting https://www.acheterviagrafr24.com/prix-du-viagra-en-pharmacie/ markets that are able to support, say 20 or more individual franchises, you will then target and provide sales-oriented individuals or companies in those markets the right to establish a predetermined number of franchises.

The subfranchisor will then receive both a percentage of the franchise fee and a percentage of the ongoing royalty fee from each unit sold. In addition to making the sale, the subfranchisor is responsible for servicing the franchises.


Multi-Unit Franchises

If the business being franchised is both substantial and sophisticated then a multi-unit franchise strategy can seriously be considered.

This is an effective way to earn dominance in the market. Multiple unit buyers tend to be well capitalized and highly experienced business operators. More than not, these organizations hold multiple franchises, often in the same general field.


Individual Franchises

The most common type of franchise is the individual franchise. These programs are designed to sell franchises to individual owners for one location or one territory.

The individual franchise approach helps build a strong company foundation and is targeted towards the owner operator helping your concept gain faster saturation in the market.

Rapid expansion techniques, as described in the Subfranchise and Mult-Unit sections, can be utilized later in the evolution of the organization as the individual unit process is established.

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