You can own a small business easily if you franchise. Franchising has three unique types and you can select any one of them to start your business. Franchises differ in position terms, your input in the business, and how much the franchisor gets involved. The three kinds of franchises are called product distribution franchise, business format franchise, and management franchise. Every type of franchise works differently. Here we shall learn more about business format franchise with examples.
What is Business Format Franchise?
This franchise is the most common and typical kind of franchise. When people think of franchises, this is what they imagine. Under this franchise, the franchisor for a fee provides the rights to trade names, trademarks, business system, and process to the franchisee, so he or she can sell the service or product. Here, the franchisor is very involved as to how the business is conducted and the process of providing the service. This franchise relationship has expectations and guidelines from the franchisor and the franchisee must adhere to them. A binding agreement or contract is also involved between both parties, binding them together for a limited amount of time.
A good benefit for franchisees is that they receive advice, ongoing support, and training from experienced franchisors. This is a brilliant advantage because good training and advice can make a lot of difference in making a business a success.
Business Format Franchise Examples
A franchise that opens under business format will be required to operate their business using the parent company’s name brand and they will also get to work with a system that has been proven successful to market the service or product and operate the business.
The parent brand will share complete procedures, a detailed plan, and proper training in every part of the business while providing ongoing and initial support.
The business format franchise examples are some of the most known franchise brands around the world. Some huge brands that work with this kind of franchising are Dunkin donuts, McDonald’s, KFC, and Starbucks. It shows the kind of close relationship the franchisee and franchisors have with this franchise type by observing the similarity of service and product at each branch of these brands.
Business Format Franchise Examples- You could buy a Big Mac in London but you can also obtain an identical burger in Manchester.
Business format franchise is really popular in the industries of fitness, fast food, and restaurants.
Some other examples in the fast food industry are Subway and Chick Fil A. Some examples in the restaurant industry are Longhorn, Olive Garden, and Golden Corral. Some examples in the fitness industry are Planet Fitness, Gold’s Gym, and Anytime Fitness. Some business format franchise examples in the retail industry are Abercrombie & Fitch, The Children’s Place, and Bath & Body Works.
Entrepreneurs that are trying to start their small businesses are increasingly selecting business format franchising to begin their careers. This format is popular and available in many industries.