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| | What are the different types of franchise? | There are various types of franchise. Generally speaking, a distinction can
be made between industrial franchising and commercial franchising: • Industrial franchising: form of business collaboration
between manufacturers. The franchisor owns a manufacturing system and/or
exclusive patents, which are assigned to another manufacturer for use in a
predetermined territory. Given that the franchisee could easily undermine the
franchisor by copying formulae and methodology received, the franchisor does not
generally transfer the entire production process to the franchisee, only a part
thereof.
• Commercial franchising: this type of franchising can be
divided into:
o Goods franchising or distribution franchising:
franchise system whose objective is to market a product or a number of products,
usually manufactured, distributed or selected by the franchisor, on an exclusive
basis, or otherwise. (e.g. clothing)
o Service franchise:
business aiming to provide a service or group of services, commercialised by the
franchisee, in accordance with methodology provided by the franchisor. This type
of franchise requires a greater level of control by the franchisor in order to
guarantee that the service provided is adequate. (e.g. hotels)
o Mixed franchise: franchises which integrate both
goods and services. (e.g. certain restaurants) | | Santiago Barbadillo, Consultant |
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Franchise Information
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