Franchises are not the same as Dealerships and distributorships A dealership or distributorship differs from a franchise in that there is no FEE involved. Presently, Shawn is the Author of OwnABizToday’s, Ezine, which presents New Home business Start up’s and Small Business Resources each week. ?Your Banker should have access to the Dunn and Bradstreet Report on the particular Franchisor. Major Franchise Types ? Other programs are less restrictive and allow for the usage of both a trade name in addition to the franchisor’s brand name. ? ? Consequently, it is [...] Unit Franchising Is the most simple type of franchise in which the Franchisor grants the franchisee the right to operate a single operation at a specified location or within a particular territory. the franchisor, the owner and developer of the franchise system licenses [you] franchisees to use trademarks, service marks, logos, or advertising owned or developed by the franchisor.” (International Franchising Association, Franchising basics). Additionally, many franchisor’s provide educational programs to franchisees before the inception of the business. Area Development Franchising In accordance with a “development schedule”, the franchisee agrees to establish a predetermined number of “unit franchises” within a particular territory. Dealers buy products usually from the manufacturer at wholesale prices. ? How many of the franchises have closed operation If you?ll need financial backing, then you will need to create a business plan.
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