YiZhi Franchise has the answer for you:

1. Classification according to the content of the franchise

Franchising is divided into the following types according to the content of the franchise. .

(1) The earlier franchising method is called "product brand franchising", also known as "product distribution franchising", which refers to the franchisor transferring the manufacturing of a specific brand of product to the franchisee. rights and distribution rights. The franchisor provides the franchisee with intellectual property rights such as technology, patents and trademarks, as well as the right to use them within the specified scope. Typical examples of franchised business forms include car dealerships, gas stations, and beverage canning and sales. Currently, internationally, this model is gradually evolving into a franchise business model.

(2) "Business model franchising" is called the second generation of franchising, which is what people usually call franchising at present. It not only requires the franchise store to operate the products and services of the head office, but also requires the quality standards, business policies, etc. to be carried out in a manner specified by the franchisor. The franchisee pays a franchise fee and subsequent royalties (royalties), which enable the franchisor to provide training, advertising, research and development and follow-up support for the franchisee. This model is currently developing rapidly at home and abroad.

2. Composition of the franchise parties

Franchising is divided into the following types according to the composition of the franchise parties.

(1)Manufacturers and wholesalers. The bottling plant franchise system established by the manufacturer is of this type. The specific method is that the manufacturer authorizes the franchisee to use the original syrup provided by the franchisor in the designated area and bottle it for sale. The job of the bottling plant is to use the manufacturer's syrup to produce beverages and bottle them, and then distribute them according to the manufacturer's requirements. product. Coca-Cola is a classic example.

(2)Manufacturers and retailers. The automobile industry first adopted this franchise method to establish a franchise distribution network; the same franchise relationship also exists between oil companies and gas stations. Many of its characteristics are similar to the franchise business model, and it is getting closer and closer to this method. The way in which automobile manufacturers designate distributors has become a franchise business model.

(3)Wholesalers and retailers. This type of business mainly includes computer stores, pharmacies, supermarkets and car repair businesses.

(4) Retailers and retailers. This type is a typical business model franchise, and the representative enterprise is a fast food restaurant.

3. Classification according to the method of granting the franchise

Franchising is divided into the following types according to the method of granting the franchise.

(1) Unit license. Unit franchising means that the franchisor gives the franchisee the right to open a franchise store in a certain location. The franchisor and the franchisee directly sign a franchise contract, and the franchisee personally participates in the operation of the store. The economic strength of the franchisee is generally weak. At present, a considerable number of such franchisees join on the basis of their original outlets. Unit franchise is suitable for developing franchise outlets in a smaller space area.

(2) Regional development concession. Regional development franchise means that the franchisor gives the franchisee the right to set up a specified number of franchise outlets in a specified area and within a specified time. The characteristics of this method are: the regional developer invests, establishes, owns and operates franchise outlets; the franchisee is not allowed to transfer the franchise; the developer must pay a fee to obtain the regional development rights; the developer must abide by the development plan . This method is the most commonly used and is suitable for developing a franchise network in a certain area (such as a region, a province or even a country). The franchisor and the regional developer first sign a development contract, giving the developer the right to develop in the specified area and time; when each franchise outlet meets the franchisor's requirements, the franchisor and the developer sign a franchise contract for each outlet respectively.

(3) Secondary license. Secondary franchise refers to the right given by the franchisor to the franchisee to sell the franchise in a designated area. The characteristics of this method are: the second-level franchisor plays the role of the franchisor; the second-level franchisor has considerable influence on the franchisor; a considerable amount of franchise fees must be paid; the franchisor signs a licensing contract with the second-level franchisor; The secondary franchisor signs a franchise contract with the franchisee.

(4) Agency franchise. Agency franchising means that a franchise agent is authorized by the franchisor to recruit franchisees for the franchisor. As a service organization for the franchisor, the franchise agent recruits franchisees on behalf of the franchisor and provides guidance, training, consultation, supervision and support to the franchisees. It is one of the main ways to carry out cross-border franchising. The characteristics of this method are: the franchisor signs an agency contract with the franchise agent, and the franchisor signs a franchise contract with the franchisee; the contract is often a transnational contract and must understand and abide by the laws of the country where it is located; the agent does not constitute a franchise contract main body.