Indian foodservice industry is beholding an unexpected consumption boom while rest of Asian countries are still struggling due to global economic downturn. Every year dozens of global enter into local markets to expand franchise networks and also become successful as youth generation of the nation welcome international brands with both hands. According to business analyst, fast food franchise market has potential to generate more opportunities in coming future. Hence it is essential for all people who want to start own fast food business that how franchise models work and how they can generate maximum revenue.
Types of franchises
Generally there are two types of franchises:
·Product distribution franchises: In this type, franchisor allows franchisees to use brand name, logo, trademark and services but don’t allow them to run entire business. For example, automobile, soft drinks & gas supply companies handle all production related activities, they appoint dealers or distributors.
·Business format franchises: On the contrary, in business format franchisees not only use logo and trademark but also take responsibility to conduct business itself. These are most commonly franchise type, majorly in industries such as fast food, retail, restaurants, retail-food and many more.
Franchise models
Due to increasing competition, companies have developed own rules and regulation to offer franchise opportunities. Single-unit and multi-unit are two types of franchising arrangements.
Single- unit: it is afranchise of agreement where franchisee can open and operate single unit. In addition, franchisee can also buy another single-unit franchise it franchisor allow.
Multi-unit: franchisee can open and operate more than one unit. Here also you need to understand Master franchise and area development franchise.
For example, in area development franchise, franchisee can open more than one unit in particular region during limited time period. On the other hand master franchise is replication of parent company; it can sell franchises to other investors in specific territory.
Types of franchises
Generally there are two types of franchises:
·Product distribution franchises: In this type, franchisor allows franchisees to use brand name, logo, trademark and services but don’t allow them to run entire business. For example, automobile, soft drinks & gas supply companies handle all production related activities, they appoint dealers or distributors.
·Business format franchises: On the contrary, in business format franchisees not only use logo and trademark but also take responsibility to conduct business itself. These are most commonly franchise type, majorly in industries such as fast food, retail, restaurants, retail-food and many more.
Franchise models
Due to increasing competition, companies have developed own rules and regulation to offer franchise opportunities. Single-unit and multi-unit are two types of franchising arrangements.
Single- unit: it is afranchise of agreement where franchisee can open and operate single unit. In addition, franchisee can also buy another single-unit franchise it franchisor allow.
Multi-unit: franchisee can open and operate more than one unit. Here also you need to understand Master franchise and area development franchise.
For example, in area development franchise, franchisee can open more than one unit in particular region during limited time period. On the other hand master franchise is replication of parent company; it can sell franchises to other investors in specific territory.
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