FRANCHISING is an excellent avenue to explore when starting a business. And whether it’s buying into an existing franchise or opening a new business, there are a number of things to understand and consider about franchising before beginning.
While the broader concept of franchising is pretty universal, individual business models vary significantly.
The two most prominent models are product or trade name franchises and business format franchises.
Product or trade name franchises are centred on a trademark or brand, and not on a comprehensive business system. The guidelines for how franchisees in this model can operate their businesses and sell their products tend to be more lenient, giving the franchisee more flexibility and autonomy.