Types of franchises


What are the different types of franchises?

The following are the different types of franchises

– Product franchise business opportunity:
– The manufacturer authorizes the owner of a store to distribute their products.
– The owner of the store can also use the name and trademark of the manufacturer.
– The owner of the store has to pay a certain fee and buy certain minimum stocks from the manufacturer.
– Example: tire franchises 🚗
– Manufacturing franchise opportunity:
– The franchisor authorizes a manufacturer to manufacture and sell its products.
– It is mainly found in the food industry 🍔 and drinks 🍹.
– The bottles and other ingredients are supplied by the franchisor.
– The franchise will produce, bottle and distribute soft drinks 🍹
– Business franchise opportunity companies:
– A company must buy and distribute products for a specific company.
– The company will provide customers or accounts to the business owner.
– The business owner pays a fee or other consideration to the company.
– Examples of routes of vending machines and distributors 📦
– Business format franchise opportunity:
– The company offers the owner of a business a proven method to manage a business. The company will provide all the assistance to configure and manage the business.
– The business owner can use the name of the company and the trademark.
– The company charges a fee or royalty in exchange for the owner of the company.
– Sometimes, the owner of the company has to buy the inventory of the company.
– This is the most popular form of franchising.
– The examples are KFC 🍗, McDonalds 🍔 and Dominos 🍕

Additional content on this subject can be found at

Video credits to Eduxir YouTube channel





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    Types of franchises

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