Types of Franchise Systems

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Most of us know that in franchise model of business, a brand allows another individual or an organization to sell products/services using the former’s name. But how many of us knew that this franchise system has three subdivisions?

Today, we have brought for you three popular franchise systems around the globe.

  1. Product Distribution Franchise
    Have you seen stores of Shree, US Dollar Store? You’ll notice that at these stores, one only gets the products of a particular brand. This is the most important feature of Product Distribution Franchise. A brand gives the responsibility to sell its products to the franchisees. In turn, the franchisees promise to solely dedicate themselves to the brand and not sell any other product. Both parties depending on the percentage they agreed upon share the revenue generated.
  2. Business Format Franchise
    This model is majorly seen in the service industry. Have you noticed how all outlets of Kake Da Hotel look same or how all Juice Salons provide exact same services? In this model, it is ensured that all the franchisees adhere to the rules set by the Franchisor. They have to make the exact same food, use the exact same furniture, have the exact same ambience and provide the exact same services. The whole purpose is that the customers should not be able to discriminate between any franchisee, which in turn develops brand loyalty
  3. Management Franchise
    Did you know that Big Boss is, in fact, a replica of the famous international show Big Brother? This is a result of Management Franchisee. In this system, the franchisor his management expertise, format and procedure for conducting a business. Indian Idol, Golmaal series are some more examples that fall under this bracket.

At Franchisezing, we have many Product Distribution and Business Format Franchise options available for you. You can explore them on www.franchisezing.com

For any query, call us on 97178-99655 or email us at info@franchisezing.com

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