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franchise 2013-05-24

Franchising Types to Pick for your New Restaurant

For making your restaurant a food empire, you need to pick one from the types of franchising available for your restaurant.

By Deputy Features Editor
Franchising Types to Pick for your New Restaurant

 

National brands, like Sagar Ratna, follow the franchising model for expansion and has established as successful brands in south Indian cuisine all over India. International brand, like MC Donald’s, is also there in the international networks by building off the platform of their franchising techniques. Here's a list of the many different ownership opportunities franchising offers.

1)      Master Franchising:  A master franchise is a franchising contract in which the master franchisor (the owner of the restaurant) hands over the control of the franchising activities in a specified territory to a person or entity, called the ‘master franchisee’. And then, with respect to regional issues, the franchisee will assume the role of the franchisor, but they typically will not own or operate the franchise.

2)      Single-unit franchising: Single-unit franchisees are typically ‘owner operators’, i.e. in addition to being the owner, you have to work as the primary operator or the manager for your restaurant. Single-unit franchising, also known as direct franchising, is rarely offered for more established franchise brands.

3)      Multi-Unit Franchising:  Multi-unit franchising is a type where a franchisee purchases more than one franchise from a franchisor. It is a very beneficial franchising technique because if it works it will gain both the franchisor and the franchisee.

4)      Area Development Franchising: Area development franchising is similar to multi-unit franchising. The only difference is that this type of franchising typically involves a greater number of units encompassing a larger territorial area. Area developers have the opportunity to raise brand awareness quite rapidly in a given locale.

5)      Company-owned and franchising: The representative-office-and-franchisee model is very similar to the franchising model. The key difference here is that the international retailer establishes its own representative office in the country and helps the franchisee in setting up business. The representative office has a team to work closely with the franchisee and is responsible for creating the brand image and consumers’ connect with the brand.

Operating model

Brands

Master Franchising

Taco Bells, Yo! China, Papa Johns, Pizza corner

Single Unit Franchising

Moti Mahal Delux, Pind Balluchi, Sagar ratna, Swagath and Yellow chilli

Multi- unit Franchising

Nirula’s, Subway, Jumbo King,

Area Development Franchising

Buddha Bar, Manchester United cafe bar

 

Company owned and Franchising

Jumbo King, Goli Vada Pav, Pizza Hut, Bercos

 

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