The franchise type identifies the type of work involved in running the franchise business. There are five different categories of franchise types – retail, management, single operator manual, single operator executive & investment
Retail Franchise
The retail franchise owner will occupy retail premises, selling products or services during retail hours for ‘walk-in’ retail. The business is totally dependent on the premises and turnover is achieved from walk-in consumers. The franchisee in general will:
- Need High Street premises in Australia
- Generate the majority of their turnover from walk-in customers
- Be selling a product or a service to an end-user
- Work and manage the franchise business during retail hours which may include weekends and long days
- Need to employ and manage staff (experience in some cases is essential)
- Be dealing with the general public
Management Franchise
The management franchise ownee will be using their experience to grow the franchise business and control staff that carry out the tasks of the job. It will require premises, which are more likely to be an office than an Australian High Street outlet.
The majority of the turnover here is generated from business-to-business activities rather than from retail. The franchisee in general will:
- Need premises which may not necessarily be on the High Street
- Be selling a product or a service
- Work and manage the business during office hours
- Need to employ and manage skilled staff (experience in some cases is essential
- Need to do a fair amount of administration in providing the product or service
- Deal mainly with businesses and a small percentage of the time with the general public
- Need to market the business personally
Single Operator Franchise / MANUAL
(Also referred to as Job Franchise), the franchise owner will be working at the franchise which usually takes the form of a trade supplying, selling and delivering products or service. It may be mobile, home-based or requiring small office premises. The franchisee in general will:
- Need to learn the trade which may be selling a product or a service
- Will work on their own initially, but may employ staff as the business grows
- Market the franchise locally to generate business
- Deal with the general public as well as businesses
- Have plenty of telephone dealings in the day to day running of the business
- In most cases be mobile, often van-based
- Do paperwork from home or have small industrial premises
- In a few cases wear a uniform
- Have flexible business hours
Single Operator Franchise / EXECUTIVE
(Also referred to as a ‘white collar’ Job Franchise), in most cases the franchisee will be usually supplying a service. It may be mobile, home-based or requiring small office premises. The type of work is executive. The franchisee in general will:
- Need to learn the business which is usually a service
- Will work on their own initially, but may employ staff as the business grows
- Market the franchise locally to generate business
- Deal mainly with businesses, but sometimes with the general public
- Have plenty of telephone dealings in the day to day running of the business
- In some cases be mobile
- Work from home or have small office premises
- Work office hours
Investment Franchise
The franchisee invests a significant amount of money in the franchise such as a hotel. The franchisee in this case will be personally working at arm’s length from the franchise and will employ a management team to operate it. The franchisee in general will:
- Invest a substantial sum
- Not work at the franchise
- Install a professional management team to run the business
- Have experience in managing a large professional team