It is always best to use a set business model when developing a franchise. This is a plan that is implemented by a parent company to generate income and help make a profit. Good business models improve the odds that your franchise will be successful. You must always do research on the territory, location, and availability of customers.
A good business model is a foundation where a business can be constructed. There are many franchise models available and some of the best include Anytime Fitness, Papa Murphy’s and Subway franchises. These models contain some of the same principles and are based on good business practices.
- Fitness franchise models include finding a compact and neighborhood fitness clubs where members can access the business 24/7/365. The model includes software and surveillance technology. There is also a great and recurring revenue stream by controlling fees and availability of service. Find a fitness franchise that is based on cleanliness, security, and minimum of staffing.
- Take and bake pizza franchises are unique since they are a take-out business or restaurant and have no baking done in store. Customers purchased prepared and uncooked pizza and take the pizza home to bake. Less investment is required since there is no cooking, little or no dine-in components, and no customer cleanup. The expenses include employees’ salaries which can be minimal, store front which is also minimal and inventory which can be varied due to combinations that are offered. Since the expenses are somewhat low, the profit potential is high.
- The fast food franchise is attractive since you can streamline operations and provide fast and friendly service. One sandwich franchise advertises and uses fresh ingredients and there is little or no cooking in the store. This model requires inventory, employees and a storefront but the profits are potentially great.
- Service franchises need to make sure that there are discounts offered and customer service is high. This best franchise model is one that focuses on ease of finding the location, high customer service and relatively low-cost.
A franchise business model must also include the ability to communicate and receive advice from the parent company. The profits must be shared with the major share going to the franchisee. Franchise models give standardized practices. The logo is usually familiar to the public, and practices must be patterned after the parent company. A franchise business model generally does not vary from site to site, and this creates brand loyalty and recognition for the customer.
For help determining a model for your franchise, seek advice from franchise experts including franchise consultants. They can offer you example documented models with contracts, basic franchise rules, regulations and other documentation to review and adjust accordingly for your own business model.
The Business Model of a Franchise