- 22 Jun
Four different tyres of franchise business
As an alternative business distribution strategy, there are many benefits you can get once you decided to join the system. However, before you make any preliminary decision, you should start your way to success with simple understanding about four different types of franchise business. Unless you want to repeat the same failure some franchisors do, you should pay close attention to each franchise type the following section shows to you.
Single franchise unit
The title tells everything you should know from this unit. A single franchise unit is particular franchise type some operates by himself/herself.
Multi franchise unit
When success comes to a franchisor with single franchise unit, most franchisors will choose to develop their business, whether it means further development in the amount of the franchise unit or the development of franchise strategy itself. When a franchisor chooses to produce the amount of his/her store, he/she has chosen to transform his/her single franchise unit into multiple franchise units. Even though this business decision requires more spaces in your business capital than you currently have, different stores also mean that you will get higher profit than you may get with only one store.
Regional franchise developer
Unlike individual and multi-franchise units that focus in store number, regional franchise developer focuses in developing one particular area without any concern about the store. Regional franchise developer allows someone to have as many franchise units as he or she want, but only within one particular area.
There are various business responsibilities we can link to a master franchisee. However, his/her main responsibility is both in franchisees’ unit recruitment and management, but only inside a pre-determined area. They are also free to choose whether to run all the businesses by themselves or recruit someone else to manage all the activities. Since master franchisee is not a franchisor, some people describe master franchisee as ‘mini franchisor.' This title perfectly matches all responsibilities and tasks a master franchisee do recruitment, management, training and other related responsibilities. Owning a business is the only job that a master franchisee is not responsible.