Direct Franchise
The simplest and most common way to develop a franchise system is direct franchising. The franchise agreement is concluded directly between the franchisor and the franchisee. The company granting the license independently provides the services specified in the agreement to the licensee. Moreover, the franchisor provides ongoing advice, support, training, marketing activities, and accounting.
Multiple franchising is also known as area development or multiple-unit franchising. This is a form where the entity obtaining the license obtains exclusivity to develop subsequent units of the franchise system in a given area.
The system operates on the basis of a framework agreement. The franchisee does not have the right to use the franchisor's trademark or know-how. However, rights are acquired in separate agreements concluded with individual entities. This type of solution is used by franchisors who want to control the entire system, but at the same morocco telemarketing time also want to avoid recruiting and training a large number of individual franchisees. The model is used, for example, in the case of expansion into new markets.
Master franchise
Master franchise or (English) sub-franchising is a situation in which the franchisee enjoys the exclusive right (exclusivity) to use the franchise system in a given area, e.g. in a given country. In this system, the master franchisee has the right to grant sub-licenses to other franchisees. Such solutions are used in countries where business conditions, i.e. political and economic conditions, differ from those in the franchisor's home country.
Regional representation
A regional representative may be a person or company that is responsible for searching for new franchisees in a given area and providing services specified in the agreement to existing entities on the market. The representative cannot sign franchise agreements. However, his duties include training, supervision and local advertising.
Does a franchisee need a lot of capital to start their business?
The answer to the question in the title is: "it depends". To open a Żabka, you will only need 5,000 PLN. In turn, to open a McDonald's, you need your own funds in the amount of at least 2,000,000 PLN. Maybe it would be better to invest such a large amount of money in real estate? You can, but franchising brings higher rates of return. Don't take our word for it. Calculate it yourself and check the franchisors' calculations. You will gain certainty as to the potential revenues and costs.
