1. Franchise transactions are divided into the following three types:
1. Franchise from manufacturer to wholesaler: Wholesalers can distribute products from manufacturers after obtaining permission from the manufacturer. of goods.
2. Manufacturer-to-retailer franchise: The automobile industry pioneered this franchise type and established a so-called franchised distribution network to solve the problems faced.
3. Franchise between retailers: This type of business model is known as franchising. This type of franchise is easily confused in form with other business agreements, such as agents, authorized distributors, etc.
2. According to the amount of funds required, it can be divided into the following three types:
1. Work-based franchising: only the franchisee needs to invest a small amount of money, usually The business may be conducted from the licensee's home without the need for a business premises.
2. Business franchising: relatively large investment is required to purchase goods, equipment and purchase or lease business premises. Because the scale of operation is much larger than that of a work-based franchise, the franchisee needs to hire some employees in order to operate effectively. This type of business has a relatively broad scope, including photo printing, accounting services, laundry, and fast food delivery.
3. Investment franchising: The amount of funds required is the highest among the three franchising methods. The first concern of investment-type franchisees is to obtain return on investment, and the hotel industry can be used as a typical example of investment-type franchises.
Extended information:
Characteristics of the franchise model
1. Characteristics
According to our country’s laws, franchising is a A method of selling goods and services, not an industry. As a business operation model, it has the following four unique characteristics in its operation process and methods:
1. Individuals (legal persons) have the right to own trademarks, service marks, unique concepts, patents, and business know-how. Wait for ownership.
2. The rights owner authorizes others to use the above rights.
3. Include some adjustment and control clauses in the authorization contract to guide the business activities of the licensee.
4. The licensee needs to pay royalties and other fees.
2. Characteristics
The word franchise is translated from the English business system to engage in business activities and pay operating fees to the franchisor. Although different countries and organizations have different definitions of franchising, generally speaking, franchising has the following characteristics:
1. Franchising is a contractual relationship between the franchisor and the franchisee.
2. The franchisor will allow the licensee to use its own trade name and/or trademarks and/or service marks, business know-how, business and technical methods, continuous systems and other industrial and/or knowledge property.
3. The grantee invests in its business and owns its business.
4. The franchisee needs to pay fees to the franchisor.
5. Franchise is an ongoing relationship.
Franchising refers to a contractual relationship between the franchisor and the franchisee.
In this relationship, the franchisor provides or is obligated to maintain its interest in the franchise's business activities in areas such as technical know-how and training of employees; and the franchisee is permitted to use information owned by the franchisor or The franchisee does not control the same trademark, trade name, corporate image, work procedures, etc., but the franchisee owns or invests a considerable part of the enterprise by itself.
Baidu Encyclopedia-Business Model Franchise
Baidu Encyclopedia-Franchise