- Fantastic Team
- 4min read
- Published: February 14, 2022
- Views: 53
Types of franchise business opportunities
In the UK and across the world, franchising has become a very lucrative business choice for many individuals who’d like to be entrepreneurs without all the hassle of starting a business from scratch. After all, pursuing franchise opportunities in the UK especially, comes with a wide array of benefits. One of these, and not least important, is the fact that you’ll be working based on a proven and profitable business model. It’s not easy to get this one right if you’re starting from scratch, but this is a given in franchising. What’s more is the ongoing training and support, marketing and advertising help you get as well as the fact that you’ll be working with a reputable and trusted brand. The benefits are endless. But do you know what types of franchise business there are? If you’re looking for some clarity, this post is for you
Different types of franchises
If you’ve always heard about franchising but didn’t know much about it, it may be worth knowing that there are different franchise models types. These models have a legally recognised structure and follow some basic principles. We take a look at some of the most common types of franchises here.
- Single unit franchise: also known as a single operator franchise, the relationship between the franchisor and franchisee in this type of franchise is that the franchisee purchases the rights for one unit in one specific area. This is ideal for those who want to dip their toes in the water and get a feel for what franchising is. There are then opportunities to grow at a later stage, such as by purchasing a multi-unit franchise for sale.
- Multi-unit franchise: a multi-unit franchise follows a similar model to the single unit franchise, with one caveat. And that is that instead of one unit, the franchisee can develop more than one unit in a particular location. There are many advantages to this including gaining access to a wider client base, the ability to increase earnings, and for the franchisor – getting the brand out to more locations and more people.
- Master franchise: there are many master franchise opportunities in the UK but it’s worth knowing what a master franchise is first. Here, the franchisor grants the franchisee the right to operate the franchise in a wider area. This may include a wider region, territory, country or even a continent. One of the main perks of this is that the master franchisee can sell smaller franchise units to other interested buyers and in that way, help the franchise grow more. These franchise types also grant the master franchisee the right to collect royalties from their franchisees within the territory, making for a lucrative opportunity.
- Area development franchise: much like the name implies, an area development franchise is a franchise that’s limited to a specific area. Similar to a multi-unit franchise type, the franchisor grants the franchisee the right to develop several units of the franchise. However, these units must be limited to a certain area. This type of franchise is ideal for those who are looking for the comfort of working within a specific area and developing it first before looking to expand.
- Buying an existing franchise: buying an existing franchise is another great option you have as this is one way of reducing your start-up costs while knowing that all systems and processes have already been established, and that you also have your client base ready and waiting for you. All that’s needed is for you to make the investment and step in. Buying an existing franchise comes with many perks, among which are the lower costs, the existing mechanism that’s been honed down and refined for optimal results, marketing and advertising and working with an established brand with trademarks, copyrights and other intellectual property rights taken care of.
Choosing the best franchise business route
The world of franchising is becoming ever more attractive for entrepreneurs who wish to take a successful idea and then replicate it for business success. Although there are several types of franchises to choose from, we’ve covered some of the most popular types of franchises here. The choice you make as to which specific type of franchise you’ll go for will depend on your financial situation, your appetite for expansion, your personal and professional needs, etc.
Learn more about our Franchise Opportunities in the UK!Learn more
If you’re unsure of which route to take, why not get in touch with us at Fantastic Franchises to help you reach the right decision? With years of experience on the market developing all different types of franchises, we are well-positioned to offer guidance and support.
- Last update: February 24, 2022
Posted in Industry Insights
Fantastic Services manages 100+ professional home cleaning and maintenance services provided within the UK, EU, Australia, Africa, and North America. With 13+ years of experience behind our back and 530+ successful franchises, we continuously set the bar higher with our cutting-edge technology implementation and marketing approach. Explore our business opportunities on the main website!