Tuesday, July 10, 2012

Different Types of Franchise Businesses | Burmareview Business

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The Franchising Business is probably not something unusual for you. You?ve probably heard about food and clothing establishments being franchised. But for those who do not have a clue, a franchise is a permission that is provided by the manufacturer or the owner to retailers or distributors to sell the manufacturers? or owners? products and or services.

assume for example Restaurant X who specializes in fried chicken. Restaurant X has established its name all over one country. Now, it wants to expand by providing franchising opportunities to smaller companies or individuals looking for a business to launch. So if Individual Y wants to have a restaurant that serves fried chicken, he or she may opt to dazzling get a franchise of Restaurant X. If it approves, the Individual Y can initiate up a Restaurant X of his or her occupy, using the notice, under the terms provided by the franchisor. Restaurant X will provide training, support and guidance to succor Individual Y originate the business.

Now that you have an view of what franchising means, let?s initiate to learn about the different types of franchise businesses. For those who are not familiar with the details of franchising, there are four types of such business:

1. The Product Franchise.

With this the manufacturer uses the franchise agreement to decide how the product is distributed by the person buying the franchise. A retail company can be provided with a franchise to distribute, for example, a range of tyres. The franchisee can consume the price name and the trademark owned by the manufacturer to distribute or sell the car tyres. The owner of the store will pay the manufacturer a franchising fee or agree to consume a minimum inventory to sell on to their customers. The manufacturer gets the income from the seize of the retailer, and/or the franchise fee, and the retailer gets the serve of the effect and experience of the franchisor.

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2. The Manufacturing Franchise.

The franchisee is permitted to collect the products under license and sell them using the originator?s trademark and name. They also bag the wait on of the national advertising of the product they originate. The company owning the product gets the franchise fee and sometimes a fee for every unit sold. Examples include the food and beverage industry.

3. The Business Franchise Venture.

The franchisee purchases and distributes the products for the franchise owner. A client bad is provided by the product owner for the franchisee to occupy. Vending machines are a classic example of this, where the franchisee purchases the vending machines and distributes and services them, taking their piece of the takings of the machines.

Related posts:

  1. The Basics for Beginners
  2. The Franchise Show
  3. Four Types of Marketing For exiguous Businesses
  4. Facts on Franchising
  5. Selling Ice to Eskimos

Source: http://www.burmareview.com/different-types-of-franchise-businesses/

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