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
Service
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
Passive/Absentee
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
Retail/Food
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
Building/Lease
Equipment/Fixtures
High ongoing overhead/Operating costs
Long start up process/Build out
Inventory/Spoilage
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.
