Types of Franchise Ownership: Learn Before Signing Up

types of franchise

Let’s look at the 3 types of franchise ownership structures offered in most franchise systems to better understand before signing up the dotted line.

This flexibility makes it slightly more difficult to define franchising, but it also means that franchise owners have a lot more freedom to run their business. Franchising sounds easy, doesn’t it? Well, for the most part, yes, but franchising is still a fluid business model.

Starting a business is easy, but maintaining it is hard. Before signing up the purchasing agreement, owns the franchise, writes checks, and planning to operate the business, let’s learn more about the most common types of franchise ownership.

types of franchise

Types of Franchise Ownership

Single-Unit Franchise Ownership

This is the easiest type of ownership to understand and the most common type of franchise agreement. It is a type of ownership when a franchisor grants permission to operate one single location. It is good for a part-time business owner or first-timer for franchising business.

Multi-Unit Franchise Ownership

Exactly what is sounds like, this type of franchise can operate in multiple locations. When you sign as a single-unit franchisee and started to see some success, this is an upgrade for your business. Owning a multiple franchise location can add more revenue into your business.

Regional or Master Franchise Ownership

In this type of franchise, the master or regional franchise owner takes the responsibilities of the brand which is designated to operate within specific territories. The master franchise owner will receive a royalty or a fee from each franchisee owner within the region. He is also responsible to conduct training, meeting, and any related activities to educated franchisees within the corporate brand.

To help you more understand about franchising, here are some beneficial information to get you started.

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