- Home Based Service
These are franchise concepts that allow the franchisee to run the business entirely out of their home. The service they provide may have a B2B or B2C focus. In some cases the service itself can be produced entirely from the home as well, but often times the franchisee may have to go out into the community to deliver the service, and/or have employees or independent contractors that do so. These are typically owner/operator style businesses with a low initial investment and very little overhead.
- Non-Home Based Service
These are franchise concepts that don’t require a retail type of store-front, but that cannot be run out of the home. This is because either the customers or the employees of the business require a centralized location to operate from. Typically these businesses require that the franchise build a team of employees that operate in the community. The people providing the service may be skilled, un-skilled, full-time, part-time, use their own vehicle or have a vehicle provided. The office setting for these types of businesses is usually a business park, light industrial space or executive suite which keeps the initial investment, overhead and risk low for the new franchisee. Some feature an owner/operator model while others use an executive ownership (manager run) model and many offer a choice, depending on the incoming franchisee’s situation and goals.
- Service with Heavy Outbound Sales Requirement
These are franchise concepts that require their franchisees to be a sales animal. The ability and willingness to cold call, knock on doors and be told “No!” 90% of the time is not the most common characteristic in your candidate base, but when you find it, you’ll know it. Many of these opportunities are B2B, usually white collar but sometimes blue collar types of businesses. They may take a little longer to ramp up initially because of the need to build the initial customer base.
- Light Retail – Under $250K Initial Investment
These are franchise concepts that typically reside within anchored strip mall shopping centers. Their footprint is usually 2,500 sq.ft. or less and they have relatively low leasehold improvement and build-out costs. Some of the concepts are designed to have the franchisee or a key employee at the location all day while others are more of a showroom or base of operations that can be covered by an hourly employee while the franchisee is out working in the community. A few even allow for semi-absentee ownership where the unit is run by a manager and the franchisee may keep their full-time job. A number of these opportunities are also geared toward multi-unit ownership.
- Large Retail – $250K+ Initial Investment
These types of franchises can be in a shopping center or stand alone building and are often in the $400K+ total investment range. They are also more often than not a recognized brand name with an established franchisee base. At FranChoice we don’t work with much food, so we have targeted businesses for this category that will satisfy a candidate’s desire to build a business they can “point to” and/or have a recognizable name, while also having strong ROI numbers. There is also a trend in this category where established franchisors are featuring or facilitating conversion programs designed to recruit a franchisee who will take over an existing independent operation, providing them with an immediate customer base and cash flow.
- Area Developer/Master Opportunities
There are many labels for these franchise opportunities (Master, Area Developer, Area Representative, etc.), but the focus here is on any franchisor that incorporates a 3-tiered structure into their offering. The Master or AD franchisee in this scenario typically buys all of a market, or a significant chunk of a major market and essentially becomes the sub-franchisor for that area. They will divide their time between selling unit level franchises and supporting the franchisees already open for business in their territory. The reward for this level of investment and effort is typically a significant cut of both the initial franchise fees and royalties generated in their territory.