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What types of franchises are there?

Posted: Tue Dec 10, 2024 9:47 am
by pilide2813
Franchising is a variety of different systems that can be divided according to various criteria, such as the way the system is organized, the type of business activity or know-how. Below you will find the most important classifications.

Types of franchise:

By type of activity:
Distribution franchise;
Service franchise;
By type of know-how transferred to the franchisee:
Product distribution franchise;
Business Concept Franchising;
According to the organization of the system:
Direct franchising;
Multiple franchise;
Master franchise;
Regional representation.
We discuss specific types of franchises later in this article.

Distribution (commercial) franchise
A retail franchise is a collaboration in which the franchisor provides the franchisee with its know-how in the form of a range of goods and knowledge on how to sell them most effectively. Your company can mark the outlet it runs with the franchisee's trademark. In addition, you have the opportunity to use the franchisor's support in visualizing the retail outlet, training staff, choosing the range, marketing and merchandising.

Franchised sales outlets include:

food and industrial products;
health and sports related articles;
children's articles;
clothing and footwear;
jewelry;
cosmetics;
home and garden items;
household appliances/consumer electronics;
telecommunications services;
gas stations.
The distribution system is easier to implement morocco telemarketing than the service variant. This is due to the fact that standardizing store operations is easier than planning detailed procedures or recipes, which are necessary in the case of providing services. Therefore, the development of franchise systems in distribution appeared much earlier than in the case of services.

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Distribution franchise in Poland and worldwide
After World War II in Western Europe and the USA, and in Poland after 1989, a trend of increasing franchising in the distribution system was visible. In the 1990s, trade margins were so large that the return on investment quickly paid off for franchise companies.

Even now, in mature markets, franchising in distribution is doing well and is constantly developing. This is due to the growth in the value of renowned brands, expert knowledge in the sales area and a well-chosen assortment.