A wide range of franchise opportunities
Most people think of McDonald's when they hear the word 'franchise.' In reality, the world of franchise opportunities goes far beyond fast food and hamburgers.
Franchises appeal to those who want to own and operate a small business, yet crave a structured environment and proven system of operation. But there's more to franchise opportunities than many people realize. Besides all the different industries (which range from fried chicken to fitness) there are a number of ways to set up shop:
Single unit - The most common of all franchise opportunities, a single unit franchise agreement licenses the franchisee to own and operate one franchise location. This option applies to both traditional and non-traditional locations; for example, an express or kiosk is sometimes a good option for franchisees looking to keep their investment low.
Multiple unit or sequential franchising - After owning a single unit franchise, and building a relationship and history with the company, the franchisee may want to expand his or her business and acquire a number of locations. This is called multiple unit franchising and there are two types:
- Area development is where the franchisee, or area developer, signs an area development agreement specifying that he or she will develop, own and operate a set number of franchises within a certain amount of time in a designated area.
- Master franchising or sub-franchising is where the franchisee signs an area development agreement but is able to sell those franchises to other individuals. The master franchisor shares his or her master franchise fees and royalties with the parent company. This is a good option for franchisees who want to expand, but do not want the responsibility and burden of operating each individual location.
Business opportunity - Be aware that a fine line divides a franchise from a business opportunity, also known as a biz opp. All franchises can be considered a business opportunity, but not all biz opps are franchises. Business opportunities are not as regimented as franchises as the owners of these operations operate under their own name. They may also work from their home or a truck and not from a permanent site. Business opportunities are also less costly than franchises, as the parent company does not require ongoing royalty fees.
Many business opportunities are home-based franchises , which are run out of the franchisee's personal living space. They can also be e-commerce businesses, where the business opportunity owner runs his or her business over the Internet.