What Makes Franchise Model Different from Other Business Models

Introduction

A franchise model is a popular business model where a franchisor grants the right to use its trademark, products, services, and operational systems to a franchisee. The franchisee is then responsible for operating the business in accordance with the franchisor’s guidelines and standards. The franchise model is different from other business models in several ways, including the level of control, support, and marketing provided by the franchisor. The study found that the franchisor has a significant level of control over the franchisee’s operations, providing a level of consistency and protection for the brand. The franchisor also provides ongoing support and marketing efforts, which benefit the franchisee and the franchise system as a whole. (Antonio Garcia, Francisco Cataluna and Enrique Castro, 2004)

Difference Between Franchise Model from Other Business Models

Franchise model differs from other business models in the following ways: –

Difference in Control

One of the main differences between the franchise model and other business models is the level of control that the franchisor has over the franchisee. The franchisor sets the standards for the business and the franchisee must follow these standards, including the type of products or services offered, the way they are marketed, and the operational procedures. This level of control helps to maintain consistency across all franchise locations and protects the franchisor’s brand. In contrast, in a traditional business model, the owner has complete control over the business operations and can make changes as they see fit (Young and Hatten, 2020).

Difference in Support

Another difference between the franchise model and other business models is the level of support provided by the franchisor. The franchisor provides training, marketing, and support to help the franchisee successfully operate the business. This support can include training programs, ongoing marketing campaigns, and access to the franchisor’s network of suppliers and other resources. In contrast, in a traditional business model, the owner must rely on their own resources and network for support (Young and Hatten, 2020).

Difference in Marketing

A franchise model also offers a unique advantage in terms of marketing. The franchisor is responsible for promoting the brand and generating awareness, which benefits all franchise locations. This marketing can include national advertising campaigns, brand recognition, and customer loyalty. In contrast, in a traditional business model, the owner must invest in their own marketing efforts to attract customers (Young and Hatten, 2020).

Conclusion

In conclusion, the franchise model is different from other business models in several key ways. The franchisor has a significant level of control over the franchisee’s operations, providing a level of consistency and protection for the brand. The franchisor also provides ongoing support and marketing efforts, which benefit the franchisee and the franchise system as a whole. While the franchise model may not be right for everyone, it offers a unique opportunity for entrepreneurs who are looking for a proven business model with established systems and support.