Your Total Guide To business

What does it mean to be a franchise owner?

A franchise owner is a business owner who has bought a franchise, this is usually an already established business model that is part of a chain, for example, McDonalds, KFC and Subway. The franchise owner is responsible for staffing, day to day operations and quality control.

Every franchise that is owned uses the same name, trademark, product and services. Buying a franchise helps to establish a relationship with the successful franchisor. The franchisor provides an ongoing brand awareness and gives the franchise owner a proven system to work with.

Research from the Small Business Administration has shown that weak management is the leading cause of business failing. Having the management already set up helps a franchise to shine as they are able to get up and running faster. They tend to become profitable quicker as the management is already set up and in place.

The franchise owner is paying for a readily established business, marketing and operating strategy. Reducing the risk and having a quicker turn on investment comes from using the umbrella companies system and presence in the market.

A massive positive for the franchise owner is that the business is already well known and recognised by other businesses and the public. Many members of the public prefer to give their custom to a brand that they have heard of as it builds trust and the public feel as if there is some sort of bond between themselves and the well known company. Having a company that is well known also allows the customers to know the quality of the product or service, simply through the company's popularity and reviews.

Types of franchise

There are three different types of franchises they are:

Business Franchise

Business franchises are the most common type of franchise. The franchisor or ‘main company’ often expands by offering business owners their name, trademark and established business. The franchisor will help the new owners with the launch as well as training the new owner on how to run the business. In exchange the franchisor is paid royalties and fees by the franchisee.

Product Franchise

Manufacturers allow retail stores to use their name, trademark and products. Manufacturers usually control the distribution of their products, usually having a minimum amount of the product that the store must purchase. There may also be fees that need to be paid.

Manufacturing Franchise

This is a common franchise used by food and beverage companies.for example: Coca-Cola. The franchisor will give the manufacturer the right to produce and sell the products using their trademark and name. For example: Coca-Cola supplies the syrup concentrate to bottling companies. These bottling companies will then mix the syrup with water and bottle the product.

Franchise owners have a distinct personality, they are often enterprising individuals, which means they are adventurous,ambitious, assertive, energetic, enthusiastic, confident and often optimistic. Franchise owners are also dominant, persuasive and motivational. Some are investigative, meaning they are intellectual, introspective and inquisitive.

There are many places that a franchise owner can work, this depends on the type of franchise they own. Industries that have many franchises include: Automotive, beauty, art, travel, recreation,education, business, pet, entertainment, financial services, food, health, fitness, technology, retail, senior care, vending, moving and storage, childcare and service, cleaning and maintenance and medical.

Many franchise owners choose to have an active role and will work alongside their employees all while managing the business. Other franchise owners own more than one franchise and visit their locations regularly to make sure that business is running smoothly.

Many businesses are co-owned by an umbrella company and the franchise owner, but some are independently owned.