Have you ever dreamt of opening your own business? While sitting in a famous store outlet, have you wished of opening a similar outlet?
Your answer exists in Franchise. Here’s everything that you need to know about it.
Franchising refers to a practice of creating and distributing the brand. Commonly, there are two types of franchising relationships.
Business format franchise format
It is franchising in which the franchisor provides an entire system of operating the business with a trading name, products, and services to the franchise. Some of the services include site selection for new business, marketing tools, ongoing training, product personnel, and financing. It may also include providing company newsletters, seminars, workshops, toll-free numbers, and websites.
Product distribution franchise format
Also referred to as product/trade name franchise, the franchise in this type of format, manufactures and supplies products to the franchisor. This type of model is seen in the gasoline, automotive, and other manufacturing industries. Putting it in simple words, this format focuses on a product the franchise owns.