While franchises were once mainly associated with fast food, they’re now a common part of society. From our favorite restaurants, stores to shop at, or businesses in the home services industry, franchises have become a part of everyday life. In fact, there are projected to be an estimated 821,000 franchises in the United States in 2024, with 15,000 new franchises being started by budding entrepreneurs looking to get out of the rat race.

If you’re considering making the leap yourself you likely have a basic understanding of the franchise process, but simply put it’s an agreement between a company, also known as the franchisor, and an individual, or the franchisee. The franchisor grants the franchisee the right to operate a business using their brand, trademarks, and proven systems in a specific territory.

The franchisor also offers franchise training and support to help that new franchisee navigate business ownership. In return, the franchisee pays an initial franchise fee and ongoing royalties based on a percentage of sales. Instead of starting from scratch, the entrepreneurs can enter into the market with a proven business concept, reducing the risks normally associated with the process.

Now for some of the details.

There are several different types of both franchise ownership models and franchise business models. It’s important to know the differences so you can make an educated decision about where to invest your time and money.

Franchise Ownership Models

The types of ownership concepts you can invest in include:

• Owner/operator: This model is well suited for first-time franchisees who want to learn the business from the ground up, as the franchise owner not only oversees the day-to-day operation of the business, but also gets their hands dirty and works on site with their employees.
• Semi-absentee owner: This franchisee may have signed for multiple units, or they may not be able to devote themselves to their franchising venture full time. They oversee operations, but a general manager handles the day-to-day responsibilities.
• Absentee owner: In this model, the owner takes a hands-off approach to the running of their business and simply treats the venture as a wealth-building investment.
• Master franchisee: A master franchisee purchases the rights to develop and sell franchises in a particular region or country. They act as a sub-franchisor, supporting and overseeing multiple franchise units.

Franchise Business Models

There are franchises available in dozens of industries, but the most common franchise models include:

1. Job franchise: This type of franchise offers individuals the opportunity to be their own boss in industries like fast food or retail. The focus is on providing employment rather than building a business empire.
2. Product franchise: The franchisee sells products manufactured or supplied by the franchisor. These franchises often operate in industries such as automotive, beverages, or consumer goods.
3. Business format franchise: The most common type of franchise, the franchisee is provided with a complete business system, including the brand, operating procedures, and ongoing support. Examples include restaurants, hotels, and service-based businesses.
4. Investment franchise: Best suitable for individuals seeking passive income or those with limited time availability, the franchisee invests capital and leaves the day-to-day operations to a manager or team.
5. Conversion franchise: A conversion franchise allows existing independent businesses to convert to a franchise model, which provides established businesses the opportunity to benefit from the franchisor’s brand recognition, systems, and support.

Franchise with a Well-Established, Reputable Brand

No matter which of the franchise models you’re interested in, make sure you’re investing in a company you trust with a proven track record. Home Franchise Concepts has been in the franchising business for 30 years and we’ve grown to include 10 well-known brands: Budget Blinds, The Tailored Closet, PremierGarage, Concrete Craft, AdvantaClean, Lightspeed Restoration, Kitchen Tune-Up, Bath Tune-Up, Two Maids, and Aussie Pet Mobile.

Plus, all our brands are backed by the support of our parent company, JM Family Enterprises, a privately owned, multi-billion dollar company that’s ranked No. 17 on Forbes’ list of America’s Largest Private Companies.

If you’re ready to get started on the path to franchise ownership, submit a franchise request form today. One of our franchise advisors will be in touch to answer your questions about our company and each of our brands, so you can find the franchise that’s the right fit for you.