What Are the Different Types of Food Franchises?

Business model franchise refers to the franchisor not only authorizing the trademark owned by the franchisee to use it, but also authorizing the franchisee to use the store logo, shop name, and business method owned by the franchisee. Rights and pay the appropriate fees to the franchisor. This model is called "second-generation franchise."

Business model franchise

Business model

First, the business model franchise can be divided into the following three types according to the amount of funds required: ^[2]

Human consumption demand has always been the initial driving force for economic development, and it has led to the continuous upgrading of the industrial structure. The psychological characteristics of human consumption demand make the products consumed by humans develop more and more invisible. This has promoted the transition of human society and economy from product economy to service economy and knowledge economy. Since the creation of trademark merchandise franchise, many different types of service industries have begun to enter the franchise field since the 1960s, including catering, business services, grocery stores, convenience stores, laundry, printing companies, hotels, car rental, etc . Among them, the earliest and most successful model should be the McDonald's company founded by Ray Kroc and Harland David Sanders' first KFC fried chicken shop in the food industry. ^[3]

As in the service industry, companies fully grant their trademarks, trade names, and business models to others, and allow others to open and operate the same storefronts in different regions. This method is called business model franchise (Business Format Franchising).