Examples of Franchise Businesses

Franchises are the very popular new business alternative as they supply all the necessary training, tools and equipment needed for the operation of the business.

Entrepreneurs nowadays prefer to establish a business in which they believe will have a greater percentage of yielding the necessary revenue from operation.

This is why these business people consider investing in a franchise business. There are several types of franchises to choose from and it would be wise to go for the most popular in the market. There are three types of basic franchises namely, product franchises, business format franchising and manufacturing franchise.

Product franchises involve the sale and or manufacture of products and the business model encompasses the overall management of the sale of these products. The franchise may either manufacture their own products or acquire these from a separate manufacturer; in this case there is a partnership that exists upon acquisition of the franchise. The manufacturer on the other hand grants the authority to market and distribute these products to the retailer. In exchange for these sale rights the franchise owner is required to pay a minimum fee either annually or monthly to the franchiser in order to keep supplies of these products and permit the sale of them. Therefore in product franchises it is important to keep up to date with the inventory to ensure that there is always an adequate amount of stock ready for sale to meet the demands of the customers. Examples include those that retail products such as popular brands in the market.

Business Format franchising involves supplying the established brand and providing the necessary training for use of the company name and all the corresponding products and services. With this the franchise owner pays a regular royalty fee and probably other monthly fees to retain the rights of the usage of the brand and all that the brand name encompasses. Also, the franchiser will provide the franchise owner with all the necessary equipment as well as the essential training that will be required for the operation of the business. These include popular food establishments such as McDonalds and other food chains.

Manufacturing franchises are those that are in charge only of the manufacture of the products but not necessarily the sale and retail of the said product. With this we can say that this type of franchise may work hand in hand with the product franchise depending on the complexity and overall setup of the franchise by the business owner. As with the business format franchising the franchise owner will be given the rights of use of the trademark as well as the company name and brand which serves as an advantage since there is an already established reputation for the company and it will not be as difficult to acquire clients that will be interested in the manufacturing services.These encompasses the franchises that manufacture tools or building materials.

There also exists various franchise types depending on the level of franchise opportunities provided, though all in all relatively boils down to the three basic types mentioned above.


  • jayesh sharma said on August 26, 2012
    Hi i am jayesh from kankroli distt. Rajsamand i have my own premises About 1730sq.mtrs. at the heart of the city so i am interested in Archise gallery and i knew that here is a good market for gifts. So can u pz tell me the budget for your gallery.
  • Amit A Gole said on January 21, 2013
    Good day sir, i am from Koregaon, dist Satara. I want to take Archise gallery and there is good market for gifts. so i want to know the initial cost for franchisee.
  • SUSHIL said on July 29, 2013
  • saif uddin talukdar said on April 27, 2016
    dear sir, i want ti start a archies gallery in kalain silchor assam please tel me how about of cost the project


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