Types of Franchising Opportunities

Understanding the different types of
franchise opportunities available is crucial.

Franchising is a business model designed to help established businesses expand. In return for fees or royalties, the franchisor gives its franchisees the right to market a product or service using their operating systems and intellectual property.

There are two main franchising models in the UK:

• product and trade name franchising
• business format franchising

Product and Trade Name Franchising

This franchise model is a distributorship associated with industries like soft drinks, petrol and cars. In this model, the franchisor would provide you with trademarks and logos, national advertising campaigns, and most importantly, product.

Business Format Franchising

In this model, the franchise agreement gives the franchisee rights to use a complete system for doing business, including logos and trademarks and the right to operate under the franchisor’s trade name. The franchisee pays an upfront franchise fee and continuing royalties which enable the franchisor to provide ongoing research and development and support for the individual franchisee and business system. This franchise model covers a wide range of businesses including fast food restaurants, automotive services, estate agents, convenience stores, recruitment agencies and consultancy.

Auditel is a full business format franchise.

Within each franchise model, there are different types of franchise businesses. Before you consider individual franchise opportunities, you should give some consideration to which type of business you would like to run. Types of franchise include:

Retail
This type of franchise will occupy retail premises and will sell products or services for ‘walk-in’ retail. The business is totally dependent on the premises and turnover is generated from walk-in customers. Marketing and advertising will probably be carried out on a national basis by the franchisor but franchisees will need to invest in a lease-hold property, buy stock and may need to employ and manage staff. Depending on the product or service involved, the hours may be long and include weekends and bank holidays.

Business-to-business management
In this type of franchise, turnover is generated by business-to-business sales. An example would be a recruitment agency. The franchisee is responsible for overall management of the business and the staff who carry out the function of the business. They will also probably be responsible for marketing the business locally. This type of franchise usually requires office premises.

Single Operator Franchise - MANUAL
This type of franchise is sometimes referred to a Job Franchise. The franchisee will work as a sole practitioner, usually supplying, selling and delivering products or a service. It may be mobile (which may involve investing in a van), home-based or require small office premises. An example would be providing a mobile service for removing chips in car bodywork.

Single Operator Franchise - EXECUTIVE
This type of franchise is often referred to as a ‘white collar’ franchise because the franchisee is usually engaged in providing some kind of professional service. As a result, this type of franchise can be home-based, although some franchisees might prefer to work from a small office premises. The franchisee might have existing experience of the professional service provided under the franchise, but usually this isn’t necessary: most white collar franchises provide training and ongoing support under their franchise agreement.

Auditel is a white collar franchise.

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Client Quotes

"As a partnership we passionately believe in our role as trusted advisers to our clients. Our success depends on theirs and we work hard to build a good relationship with every one of them. Working intimately with SME's and the individuals who run them we have a pretty good understanding of their needs and most tell us that the two resources they really need are more time and more money. When we saw the excellent results that Daryn and his team were able to achieve for us, we quickly realised that Auditel could be a very valuable service for our clients too. We're delighted to be working with Auditel and are proud to have added another innovative service to our portfolio." - Michael Caddock, Managing Partner at Whiting & Partners

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