What are the different types of franchising?
There are three main types of business franchises- Product/trade name Franchising- In this type of franchising, a franchisee purchases the rights to a logo or name from a franchisor. Distributorships- In distributorships, a parent company gives permission to a franchise to sell and distribute their products. Business Format Franchising- This is the most “hands on” form of franchise. In this case, the parents company is very involved with the start-up and management of the franchisee’s business. Training, finance and marketing assistance along with supply of product are all aspects of business with which a franchisor will help its franchisee in Business Format Franchising.
