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Different Franchise Types to Choose From

How To Research A Franchise Opportunity

What Opportunities are Available

Finding the right franchise in the UK can be a daunting task, however, if “ you ” approach it systematically , you should easily arrive at a short list of suitable franchise opportunities. It's a question of matching the skills and experience required to run a particular franchise, with what you like doing, and are good at.

For more information on choosing a franchise, please view our Choosing a UK Franchise section

Franchise Building

A Franchisor may elect to build and develop the franchise network using any one or more of the following methods. These are sometimes referred to as ‘development types'.

(1) A Master Franchisee operates under a master franchise agreement to open a minimum number of units and then sub-franchise the brand throughout a Country.

(2) A Regional Franchisee operates under a master franchise agreement to open a minimum number of units and then sub-franchise the brand throughout a Country.

(3) An Area Developer buys the rights from a master franchisee or the original franchisor to sell franchises in a defined region.

(4) A Unit Franchisee buys the right to operate a single unit franchise. A unit franchisee may at a later stage buy further unit franchises. If they buy the same brand, they are referred to as a multi-unit franchisee.

Different Franchise Types

While franchising spans many business areas (see industry sectors) the type of franchise, in general, falls into one of five categories listed below.

Retail franchise – As a franchisee you would occupy retail premises, selling products / services during retail hours for ‘walk-in' customers. The business is totally dependent on the premises and turnover is achieved from walk-in customers.

Management type - The franchisee will be using their experience to grow the business and manage staff involved in the day-to-day tasks of the work. This requires premises, which are more likely to be office based than a high street outlet.

The majority of the turnover here is generated from Business to Business activities rather than from retail.

Single Operator Franchise / EXECUTIVE – This type of franchisee usually works in the form of a trade, supplying and/or selling and delivering products or services. It may be mobile, home-based or require small office premises. Typically it involves offering a service to customers

Investment Franchise – With this type of franchise, the franchisee would invest a substantial amount of capital in the likes of a hotel chain and would employ a management team to oversee the business on their behalf.

Industry Sectors

Franchise opportunities exist across a wide and exciting range of sectors. Below is a sample of the scope of franchising in the UK . As a perspective franchisee you really do need to have a clear idea of what industry you want to enter.

Hotel & Catering – Hotels, Bars & Pubs, Restaurants, Fast Food

Store Retailing –   Convenience Stores, Electrical Goods, Clothes & Shoes

Personal Services – Hair & Beauty, Fitness & Weight, Computer & Telephone

Property Service – Estate Agents, Garden & Landscaping, Emergency & Repairs

Transport & Vehicles Services –- Parcel & Courier Services, Car & Driver Hire

Business & Communication – Professional & Financial, Print, Design & Signs