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Types of Franchise Business Opportunities
There are two main categories when referring to franchise opportunities. These are product and trade name franchising and business format franchising.
Big blue chip companies and industry names in the gas (petroleum), automobile, soft drinks and beverage sectors can usually be found under the product and trade name franchising umbrella. While the big company supplies the merchandise, logo and trademarks, and usually takes responsibility for some or most of the advertising, the franchisee doesn't pay royalties on sales. The franchisee sells the services or products provided by the manufacturer. In general, the franchiser will assist in the set-up and advise on the best locations for the business, and continue supplying goods and things such as vending machines (with all the servicing needed to keep them operating successfully) and whatever else is required to sell products.
The second method is business format franchising. An essential part of the business format franchising is the use of trademarks and logos. The franchiser will help with the site selection and the franchise company will determine the design and layout of the business.
Did you know that the color on the walls of a dine-in fast food restaurant dictate how fast people eat their meal? Therefore, due to these studies, the franchisers find it imperative to be involved even at this level of the decision making process. They will also dictate the advertising methods, training and the philosophy or mindset that the employees must possess.
Some common examples are fast food chains, real estate agencies, convenience stores as well as recruitment agencies.
Start up costs and royalties are two fee structures that a franchisee is expected to pay. The royalties are basically a type of commission paid to the franchiser for their constant support and involvement.
Whichever type of franchise you feel is best, you have to consider how good a salesperson you are and which area you feel you'd be best suited to. Remember, the popularity of a brand name may not translate into immediate success. Franchising may be a great business opportunity, but you should choose your franchise wisely.
Article Source: ArticleZones.com
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Interested in owning a franchise business? Check out www.infoaboutfranchise.com and learn the benefits of operating a franchise business and other related topics.
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