Types of Franchise Business Opportunities
In the world of franchise business opportunities, it helps to learn about the different types of franchise models that are available.
Picking an industry or field (home services, retail, restaurant, finance, etc.) is easy, but there are many different franchise business models – ranging from individual ownership, to partnerships, turnkey businesses, and more – which will help you to further home in on what type of franchise business opportunity you want to run.
Single Unit Franchise
Among franchise business opportunities, the single unit franchise is the classic model. The single unit franchise is where a business owner decides to open a franchise restaurant, or fitness center, or any other type of business, in one location. This business is branded by the parent company, and all dealings with hiring staff, coordinating supplies, and getting equipment come from the franchisor. This is a great franchise model with a proven track record of success. Single unit franchises are easy to manage, and can yield a very lucrative profit. The only downside is that single units do not have much room for growth or expansion, and any additional franchises under the same brand must be purchased as if starting an operation for the first time.
Multi-Unit Franchise
With multi-unit franchise opportunities, the business owner enters an agreement with the franchisor in which multiple franchise units will be developed in a certain geographic location within a set period of time. Under a multi-unit agreement, the business owner can usually purchase the franchises at a bundled rate, but there is a set timeline for the development of each of the franchise units that must be adhered to, in order to maximize distribution and profits. The biggest advantage to a multi-unit franchise is that there is lots of room for growth, as well as capturing a large customer base. Personnel can be moved between the franchise units to meet staffing demands, supplies can be purchased in bulk for all units, and operations can be streamlined by combining functions of multiple units.
Purchasing An Existing Franchise
Many emerging entrepreneurs gravitate to the idea of existing franchise business opportunities. Existing franchise owners sometimes want to exist the system – some leave in order to retire, others are transitioning to other projects, and some simply want to streamline their operations from multiple units down to one location. Whatever the reason, it is possible to negotiate a sale of the business with the existing owner, or directly with the parent company. The biggest advantage to purchasing an existing franchise is that the startup cost is significantly lower than opening a franchise location from scratch. The building exists, the equipment exists, the staff is already trained, and there is already a customer base. Remember to do your research ahead of time. Find out how many owners that particular location has been under, if there is a high turnover rate, and how much business that location does, on average. The last thing any emerging entrepreneur wants is an existing franchise with low startup costs that barely turns a profit.
Master Franchise
A master franchise (or area franchise) is more advanced than any of the aforementioned franchise business opportunities, and it requires adaptability, and the ability to figure out logistics, sales, high level management, and hands-on assistance. A master franchise agreement requires the business owner to actively work as a liaison with prospective single and multi-unit franchise investors, in order to makes sales. A master franchise owner also works with existing franchise owners to ensure that they are not running into any stumbling black – and if so, to help coordinate a solution to get those franchise units back on track.
Financial Business Opportunities
If you are looking at different business franchise opportunities, but would still prefer the freedom of running your own show without being tied to a corporate brand, as well as an operation you can run out of your home or small office, you should check out the Commercial Capital Training Group (CCTG). If you want a low investment business to achieve financial independence, CCTG will give you all the tools and training courses you need to start making money.
The premise is simple: Businesses are always in need of money, but many conventional lending institutions and banks cannot supply those businesses with the working capital they need, nor can they do it within the time frame that the business is operating on. CCTG will introduce you to a panel of investors, and guide you to facilitating a finance deal between the business owners and the investors. When the deal is made, you will get a broker’s fee, plus anything else you are due that has been written into the agreement.
You can put as much or as little effort into building a client portfolio as you wish, and if you find yourself at an impasse, CCTG will be there to help you overcome any obstacles. If you want to make that leap toward owning your own business and making money on your terms, look into the Commercial Capital Training Group.
Further Reading