As you explore the idea of buying a franchise through a successful brand, you might wonder what type of franchise would prove most successful in general and for you. Off the top of your head, you might think of restaurant and grocery chain franchises, but there are many from which you can choose.
What Is a Franchise?
A franchise is a creative and mutually beneficial way to distribute products or services, such as looking to offer the best in home healthcare franchise. The franchisor, or main business, establishes the business model and brand name and allows investors, or franchisees, to pay a royalty and initial fee to open a business under their name while using their likeness, marketing, and more
Here are four different types of franchises for you to consider.
1. Job Franchise
This low-key type of franchise usually involves minimal start-up investment and more freedom for you in operations. Often home-based or using your own vehicle, a job franchise lets you start and run a small franchised business on your own with no staff to hire or manage and no customers to serve in-person. You might need to buy some equipment, a small amount of stock and a special vehicle that is reliable. There are many services that fall into this group:
- Plumbing
- Pool maintenance
- Shipping service
- Cell phone repair and accessories
- Cleaning
- Lawn care
- Travel agency
- Event planning
- Children’s services
2. Product Distribution
A product distribution franchise is similar to a job franchise but is specific to the distribution of products, as opposed to services and service-based products. This type of franchise does not provide franchisees with a lot of resources.
These franchises might involve selling products including:
- Cars and care repair parts
- Computers
- Bicycles
- Appliances
- Vending machines
Some well-known product distribution franchises include Ford, John Deere, GoodYear Tires, and Exxon.
3. Business Format Franchise
Perhaps the most well-known type of franchise is the business format since it includes fast food, restaurant, grocery, fitness centers, and business services. If you want to invest in a good burger franchise opportunity, this is your type of franchise. With this franchise format, you get to use the franchisor’s trademark and many others. With this business format franchise, you gain access to the franchisor’s trademark and resources like detailed plan processes, training support, and nearly any other aspect of the business you need.
4. Conversion Franchise
A conversion franchise is an alternative modification to a traditional franchise relationship, breaking up smaller pieces of the franchise into units for you. With this, you can adopt trademarks, training systems, client service standards, and marketing and advertising programs. While a conversion franchise is a little different from other types of franchises, conversions offer the potential for rapid growth. and include businesses such as florists, plumbing and electric, and real estate.
As you can tell, each type of franchise has its own rewards and limitations. It is up to you to decide which one you can operate with ease and grow the size you desire.
