Types Of Franchises
There are several types of franchises, and finding the perfect one for you can be challenging. Contact That Franchise Guy to help you uncover the best franchise for you!
Many aspiring entrepreneurs have taken advantage of the chance to invest in a franchise business model, which has evolved and grown at a rapid pace over the past few decades.
The chance to be your own boss, invest in an established brand, income potential, and the satisfaction of owning a business has enticed many individuals to join the ranks of being a franchise owner.
Along with these perks, there is a great amount of flexibility when it comes to choosing the type of franchise to invest in and finding an opportunity that fits an individual’s lifestyle.
What Is A Franchise?
A franchise is a business model in which a franchisor sells a license to a franchisee, giving the franchisee the right to sell a product or service using the franchisor’s business knowledge, processes, and brand.
What Types Of Franchises Are Available?
- Single Unit Operator – As the name implies, a single unit franchise involves a franchisor who grants a franchisee permission to operate a single location. This type of franchise structure may appeal to first-time business owners looking to gain experience in operating a business and not having any additional pressure managing multiple business locations. This also allows an individual to put all their energy and effort into running a single business unit, which can increase their chances of success. In addition, there are financial benefits as the initial franchise investment fee is less for this type of franchise structure than any others.
- Multi-unit Franchisee – A multi-unit franchisee involves a franchisor who grants a franchisee permission to operate more than one location, usually within the same region. This type of franchise usually appeals to more experienced business owners who are able to handle the tasks associated with managing multiple locations. Unlike a single-unit franchise, the upfront cost for a multi-unit investment is higher. Although the initial investment cost may be higher, a franchisor may offer discounts to those individuals looking to invest in a multi-unit franchise. In addition, maintaining multiple units can lead to increased sales volume.
- Master Franchisee – Involves a franchisor who grants a franchisee permission to operate as a mini franchisor for a specific territory. This means the master franchisee is responsible for recruiting, training, and providing ongoing support to all franchisees they recruit. This type of franchise ownership is for a more seasoned professional who has the experience and knowledge in managing and expanding franchise locations within a specific territory. Becoming a master franchisee requires a significant capital investment, but also can lead to greater rewards when accounting for the portion of franchise fees and ongoing royalties, which are awarded to a master franchisee for their efforts.
Find A Franchise That Fits Your Lifestyle
Everyone is different when it comes to handling their family, career, and other life commitments.
This means while some individuals may have an abundant amount of time to commit to a franchise opportunity, there are others that may have very little time.
The good news is there are various franchise opportunities that can accommodate the many different lifestyles and time commitments that are unique to each person.
- Absentee – Absentee is a franchise term in which it is not necessary for an owner to be physically present in order for the business to function. This type of business ownership is great for individuals looking to earn additional income while currently working their regular day job. The responsibilities for an absentee owner may include accounting, managing schedules, or bookkeeping, which can all be done without physically being present. Sometimes called “Passive” this approach is often taken by large investors who have people running the businesses for them. There are also a few franchises or business opportunities that manage businesses for passive investors.
- Semi-absentee – Being a semi-absentee owner allows someone the opportunity to run a franchise in a part-time capacity, usually between 10 to 15 hours a week. Also known as the Executive model, this is a perfect opportunity for individuals looking to diversify their income and also allows for a flexible work schedule. Most semi-absentee owners run the business part-time and still keep their regular jobs or operate other businesses.
- Owner Operator – This refers to someone who takes a hands-on, full time approach and is managing all the day to day operations. This is the most common type although most are scalable to become semi-absentee. Any franchise worth investing in will be one that can grow to a semi-absentee management style once the team is in place. A franchise that does not have the ability to grow, or scale, to a CEO role for the franchisee is known fondly as a Chuck in a Truck. It is a single person business model where you don’t have many employees so you can’t scale.
Find Your Perfect Franchise Fit
There are many factors to consider when investing in a franchise, but most importantly, it is extremely important to find an opportunity that fits a person’s personality, lifestyle goals, , and financial goals. Investing in the right opportunity can mean the difference between a rewarding and fulfilling experience or a challenging and unfulfilling one.
John Anderson, aka, That Franchise Guy can assist with narrowing down franchise opportunities and matching any aspiring business owner to a compatible franchise business. That Franchise Guy can assist with the following:
- What Type Of Franchising Do You Prefer – Setting up a consultation with That Franchise Guy and providing details on your current lifestyle, business experience, knowledge, and time commitments can provide all the details needed to confirm whether an absentee, semi-absentee, single-unit owner, or master franchisee makes sense for your situation.
- Funding Options – Funding is the most critical aspect of investing in a franchise. Without the proper funding, it would not be possible to proceed with a franchising opportunity. That Franchise Guy can assist with finding resources to help with funding options if necessary to proceed with paying the initial franchise fee.
- Identify Good Franchise Fits – Depending on your personality, industry experience, financial portfolio, and business goals, That Franchise Guy can help you determine which franchise type is best suited for you. This can help take the guesswork out of figuring out which way to proceed with a franchise investment and help avoid any costly mistakes by choosing the wrong opportunity.
Why Choose That Franchise Guy?
Proceeding with a franchise investment without the help of an experienced and trusted professional is a huge gamble. Don’t risk the chance of making a bad investment. As John discusses in his book, it’s crucial to find a guide and mentor who has franchise experience and knowledge.
That Franchise Guy is here to help with the franchising purchasing journey for any aspiring business owner and will do what is necessary to find a compatible franchise opportunity to give you the best chance for future success.