Team reviewing a business plan

Franchises, once mainly associated with fast food, are now a ubiquitous part of society. From the restaurants we dine in, to the stores we shop at, to the businesses we call to help maintain our homes, franchising is interwoven in the fabric of our daily lives. In 2022, there were approximately 790,500 franchise establishments in the U.S.

Most budding entrepreneurs have a basic understanding of franchising. Simply put, franchising is an agreement between a company, also known as the franchisor, and an individual, or the franchisee. The franchisor grants the franchisee the right to operate a business using their brand, trademarks, and proven systems in a specific territory. They offer training and support to help the franchisee navigate business ownership. In return, the franchisee pays an initial franchise fee and ongoing royalties based on a percentage of sales.

This allows entrepreneurs to enter the market with a proven business concept, reducing the risks associated with starting from scratch.

But there are several different types of franchise ownership models as well as multiple franchise business models. If you are looking to invest, you need to study them closely to see which is best for you.

Franchise Ownership Models

Below are the varying types of ownership concepts you can invest in:

  • Owner/operator: This model is well suited for first time franchisees who want to learn the business from the ground up. As the name reflects, the franchise owner oversees the day-to-day operation of the business, working on site with their employees.
  • Semi-absentee owner: This franchisee may have signed for multiple units, or they may not be able to devote themselves to their franchising venture full time. They oversee operations while relying on a general manager to handle the day-to-day.
  • Absentee owner: In this model, the owner takes a hands-off approach to the running of their business. They treat the venture simply as a wealth-building investment.
  • Master franchisee: A master franchisee purchases the rights to develop and sell franchises in a particular region or country. They act as a sub-franchisor, supporting and overseeing multiple franchise units.

Franchise Business Models

There are franchises available in dozens of industries, but the most common franchise models are usually one of the five below:

  1. Job franchise: This type of franchise offers individuals the opportunity to be their own boss in industries like fast food or retail. The focus is on providing employment rather than building a business empire.
  2. Product franchise: The franchisee sells products manufactured or supplied by the franchisor. These franchises often operate in industries such as automotive, beverages, or consumer goods.
  3. Business format franchise: The most common type of franchise, these provide the franchisee with a complete business system, including the brand, operating procedures, and ongoing support. Examples include restaurants, hotels, and service-based businesses.
  4. Investment franchise: The franchisee invests capital and leaves the day-to-day operations to a manager or team. This model is suitable for individuals seeking passive income or those with limited time availability.
  5. Conversion franchise: A conversion franchise allows existing independent businesses to convert to a franchise model. This option provides established businesses the opportunity to benefit from the franchisor’s brand recognition, systems, and support.

Franchise with a Well-Established, Reputable Brand

No matter which of the franchise models you’re interested in, make sure you’re investing in a company you trust with a proven track record. Home Franchise Concepts has been in the franchising business for thirty years and we’ve grown to include ten well-known brands: Budget Blinds, The Tailored Closet, PremierGarage, Concrete Craft, AdvantaClean, Lightspeed Restoration, Kitchen Tune-Up, Bath Tune-Up, Two Maids, and Aussie Pet Mobile.

Plus, all our brands are backed by the support of our parent company, JM Family Enterprises, a privately owned, multi-billion dollar company that’s ranked No. 17 on Forbes’ list of America’s Largest Private Companies.

If you’re ready to get started on the path to franchise ownership, submit a franchise request form today. One of our franchise advisors will be in touch to answer your questions about our company and each of our brands, so you can find the franchise that’s the right fit for you.