Franchise Types

Franchise Types

There are six types of contracts:

1. Franchise Investment: franchisee needs to invest more and, though gain management strategy, commits a third party to conduct business (hotels and restaurants).

2. Franchise management: a team of franchisee operators in a certain region (mobile operations).

3. Executive franchise: the franchisor manages and operates one business (financial consulting, project management).

4. Commercial Franchise: franchisee invests in a commercial establishment, equipment and personnel, it being the owner and operator (clothing stores, electronics, etc.).

5. Franchise sales and distribution: the franchisee is a salesman, distributing products in a limited territory and they can recruit staff, if needed.

6. Franchise Entrepreneur: franchisee invests less, buying the right to operate a service (installation, repair, security).

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