Visit our franchise video section.
America's #1 Franchise Directory, Trusted for Over 15 Years

Consider Franchising Strategy When You Choose

One of the most common ways to enter franchising is through investing into a single unit franchise, a location that a franchise partner can manage on a daily basis and run with the assistance of a crew.  There are various ways to enter the franchise industry and each option holds its own perks and has its requirements.  What options are available to both those new to franchising or experienced with the industry?

Depending on your background and the amount you are able to invest, certain types of franchising may be better suited than others.  Consider potential franchisee A, who has moderate management experience, limited investment interests, and wishes to keep ownership and responsibilities to a minimum.  Single unit ownership is ideal is this case.

For first time franchisees, single unit ownership is the most common initial step.  For potential franchisee B, or someone who already has ownership and management experience, along with greater capital to invest, owning more than one location can be ideal.  This may involve gradually increasing the number of franchise locations owned, which is sequential franchising, as one sequentially gains greater responsibility within the franchise system, or area development, which involves ownership that initially covers an area and multiple locations from the start as agreed with the franchisor.

Both potential franchisee A and B can raise interesting questions to ponder when considering whether or not the particular business model they are interested in is most successful when managed under a certain kind of franchising.  This can involve single or multi unit management, as well as master franchising, which widens responsibilities over an area to investors who act as franchisors in a region and franchisees that are then recruited by the master franchisor of the area.  Certainly not every type of franchising or potential franchisee is well suited for every type of business.

So which type of franchising is most well suited to particular business types?  In other words, does single unit franchising work best for certain kinds of franchises versus others?  These questions no doubt raise still further questions, and requires in depth analysis of how certain approaches to franchising affect the overall profitability of a business.  This would require looking closely at certain products or services and how they are best delivered to their respective customers in any given territory, and whether or not certain types of franchising are best suited to fulfilling the given need of an area.

Which type of business would benefit most from single unit operations:  a photography franchise, home health care for aging populations, quick service franchise, or a tax franchise?  A home based service focused on children or a staffing franchise focused on finding employees for local corporations?  Potential franchisees of all kinds who consider the success rate of franchise businesses when operating under a certain type of franchising and how this may affect overall profitability and the endurance of the brand over wider territory vs. a single location can gain insight prior to signing any agreements.  Asking franchisors how their approach to franchising is benefiting their bottom line, and their customers, is an excellent way to more fully understand the strategy that franchisors are using to distribute their products or services and whether or not this strategy is one you can believe and invest in.

comments powered by Disqus

Your Request List

You can add items by clicking the "Add to Request List" button or checkbox when you find something you're interested in.

You may add up to 15 items to your Request List

Your request list will follow you around the site.

When you are ready to complete your request for free information, click "Submit" in your Request List.

Why not get started by browsing our New Franchise Opportunities or Low Cost Franchise Directory?

You may only enter 15 items in your Request List.

To request information from your selected companies, just fill in the form and click "Submit".

OK, got it

Request Info From:

  •  

Your List is Empty

You can add items by checking the "Request FREE Info" boxes.

* indicates required field

Optional Information

Join our mailing list!

Yes, I have at least $50k to invest and I'm interested speaking with a Franserve affiliated consultant.

Terms and conditions apply. We respect your privacy

TRUSTe online privacy certification