It is always better to use an established business model when developing a franchise. This is a plan that is implemented by a parent company to generate revenue and help make a profit. Good business models improve the chances that your franchise will succeed. You should always do your research on the territory, location, and availability of customers.
A good business model is the foundation on which a business can be built. There are many franchise models available and some of the best include the 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 seeking out compact and neighborhood fitness clubs where members can access the business 24/7/365. The model includes surveillance software and technology. There is also a great and recurring revenue stream by controlling the fees and availability of the service. Find a fitness franchise that relies on cleanliness, safety, and a minimum of staff.
- Take-out and bake-in pizza franchises are unique in that they are a take-out business or restaurant and do not bake in-store. Customers bought uncooked and prepared pizza and took it home to bake. Less investment is required as there is no kitchen, few or no dining components, and no cleanup by the customer. Expenses include employee salaries, which can be minimal, store front, which is also minimal, and inventory, which can vary due to combinations offered. Since the expenses are somewhat low, the profit potential is high.
- Fast food franchising is attractive as it can streamline operations and provide fast and friendly service. A sandwich franchise advertises and uses fresh ingredients and there is little to no food in the store. This model requires inventory, employees, and a store, but the profits are potentially great.
- Service franchises need to ensure discounts are offered and customer service is high. This best franchise model is one that focuses on ease of finding a location, high customer service, and relatively low cost.
A franchise business model must also include the ability to communicate with and receive advice from the parent company. Profits must be shared with the majority going to the franchisee. Franchise models give standardized practices. The logo is often familiar to the public and practices should be modeled after the parent company. A franchise business model generally does not vary from site to site, and this builds brand loyalty and customer recognition.
For help determining a template for your franchise, seek the advice of franchise experts, including franchise consultants. They can offer you examples of documented models with contracts, basic franchise rules, regulations and other documentation to review and adjust accordingly to your own business model.
