Franchise Resources

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Business Characteristics of Franchises

Being able to quickly identify the type of franchise business that meets your interests and objectives will save you time and money not to mention headaches. By understanding the basic franchise characteristics you will be able to make better choices. Franchises types fall into five basic categories. Understanding what is involved with each category will help you target the type of business that appeals to your needs. Below are listed the categories with their attributes.

Home Based

Low overhead
Low initial investment
No Inventory
No Receivables

No/Little equipment needed
No/Or Few employees
High income potential
Good working hours/Possibly part-time
Direct Marketing of your Services Necessary

Business to Business

Do business with other businesses
9-5/Business hours
No consumers

Sales related
Face to Face
Professional experience needed
High Income Potential
Management/Consulting experience
Direct Marketing of your Services Necessary


Skilled to Non Skilled/Blue collar
Lower Education Requirements

Craftsmanship Techniques and Training
Manual or Hands On Work
Maintenance Industry or Focused
Management of Unskilled/Low wage employees
Lower initial investment
Strong Marketing Programs Incorporated
Moderate to High Income Potential


Simple Business Models

Investment Return Major Characteristic
Management of Few Unskilled/Low wage Employees
Moderate investment Moderate to Good Income
No need to be there/Part-time
Multiple Unit Potential
Continues Working Current Job/Running Current Business
Strong Marketing Programs Incorporated


Looking for latest trends/Fad businesses

Brand name recognition
7 days a week/Long hours
Manage unskilled/Low wage employees/High turnover
Cash business
High initial investment
High ongoing overhead/Operating costs
Long start up process/Build out

No selling/Open door customers come to you
Moderate/Good Income

Now that you know the basic categories and their main characteristics, you can make a better decision as to which franchise is best for you.

When conducting your franchise due diligence, keep in mind the free services of FranFinders expert franchise consultants.

About the author

Rob Bennett

Rob had served in the corporate-world for 18 years filling various technical capacities, from structural design to project engineer. His experience lends to FranFinders strategic planning, systems design and optimization.

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