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Getting to Know Different Types of Franchise Opportunities

March 28, 2015 Posted by Admin Unit Franchise

Franchise is loosely defined as the right or license granted by a company to an individual or group to market its products or services in a specific territory. There are many franchise opportunities out there and most people have this basic understanding of what a franchise is. Franchising is a great tool for entrepreneurs who are looking to start their own business. More and more companies are beginning to offer franchise opportunities because it allows these companies to grow their market quickly and for relatively low cost.

There are three basic types of franchise opportunities that have proven to be very valuable in a less than fair economy. The first is a distributorship. As a distributor you are granted the opportunity to sell the parent company’s supplies in smaller quantities. A prime example of a distributorship is a car dealership. The second type of franchise is a trademark or brand name licensing agreement that allows you, the franchisee, to use the parent company’s trademark or logo. The licensor has very little control over the franchisee as long as they can collect royalties and maintain control of the license. The third type of franchise is a business format franchise. These franchises are given the right to sell goods or services by a company, using its business plan. In this circumstance the franchisees are usually charged an initial fee and are required to pay the franchisor a percentage of sales as stated by the contract.

Remember, these are only three of the most basic types of franchise opportunities available to you; it’s important to do research on what will work best for you in your situation. There are certain questions that should be asked. When choosing a franchisor ask yourself, how long has this company been around? Are franchisees normally successful? What rights do you have as a franchisee? These are all important questions to research when choosing a franchise to start.

In today’s stagnant economy you want to choose carefully when picking a franchise. Why not go with an industry that many economists believe to be recession-proof? Jani-King’s commercial cleaning franchise opportunities have been around for over 40 years and are at the forefront of a billion dollar industry. Jani-King offers extensive training and support for its franchisees and helps guide them to the path of success.

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