The three basic types of franchising

by admin

Franchising has become the most popular in almost all economic sectors. Whether gym, fast food restaurant, car rental, construct workshop, tutoring and music school, in every imaginable industry, the successful concept is used as a form of marketing.We distinguish between the three types of franchise sales franchising, franchising services and product franchise, which are distinguished.

Distribution franchising: The franchisee sells some products or the epitome of certain goods in the shop.The store shall include the name of the franchisor; the franchise license is not limited to a single product or group. The franchise includes the total package that characterizes the franchisees operating as features of the shop or organization of corporate governance. Examples are the OBI DIY, The Body Shop, food bowl, Aral or mango.

Sales Franchising is the oldest form of franchising. Sewing machine manufacturer Singer made it possible in the 19th. Century and it comes to traveling salesmen. They sell Singer sewing machines on their own account service franchising and the franchisee provides a service under the name – that is, under the trade name, the trade name or trademark. These service franchising are available now in almost all industries. In industries such as the hotel and catering franchise has established itself for a long time, but also in more recent service areas such as the senior care, hair removal or mobile telephony, also is offered franchise. Prominent examples of this form of economic aid are students, Sunpoint, Hertz, Burger King, Holiday Inn or Kieser Training. The range of services franchising has the largest share in the franchise industry and it continues to grow for years.

Product franchise (industrial franchise) in response to statements such as recipes of the franchisor. The franchisee produces a commodity. He even sold the product obtained under the trade name of the franchisor. Typical representatives of this branch are beverage companies such as Coca-Cola or Pepsi and manufacturer of printer consumables such as Cartridge World.