The Five Types of Franchising

Franchising helps you expand your business more rapidly even if you lack the time, people or the money to start everything on your own. 

But did you know that there are many types of franchising?

There’s not just one, but FIVE different ways how you can start franchising. 

As an aspiring entrepreneur, it would be to your advantage to know the different types of available franchising models. This way, you will be able to know which model would suit your business goals best. 

So if you’re ready, here are the five different types of franchising that you should know about.


First on our list is the job franchise.

This type of franchise model is often home-based and offers one of the lowest investment on your part. With a job franchise, all you have to do is pay the franchise fee. Most of the time, franchise fees are low cost and really affordable compared to opening your own business from scratch. This makes franchising the no-brainer option for aspiring entrepreneurs like you to get started on your own business.

Once you’ve paid that, you may need some more funds to buy a vehicle or some equipment to get started. Most franchises follow this model, especially those that provide a service. 

Some examples of a job franchise model are:

  • travel agencies, 
  • cleaning and plumbing services, 
  • phone repairs and accessories, 
  • events planning, 
  • children services, 
  • lawn or pool maintenance to name a few. 


As the name implies, the product franchise is a franchise model where you become a distributor of a well-known product. Hence, this model of franchising is sometimes called a “Distribution Franchise”

As the franchisee, you become an authorized distributor of a company’s product. If not that, you may offer the same services as the parent company using their branded trademark. 

In the US, product franchising is the biggest source of retail sales in the country. 

To be more familiar with how product or distribution franchising works, think about well-known brands in different industries like the following:

  • John Deere Tractor for large equipment, 
  • LG for appliances, 
  • Ford for cars, 
  • Goodyear Tires for parts, 
  • Dell for Computers,

and other similar brand names that are already well-known in their specific target markets. 

Soft drink manufacturers like Coca-Cola also do product franchising. But aside from providing licenses and rights for distributing their products, they also allow their franchisees to take part in the manufacturing process. This franchising model gives more room for additional profit if you wish to franchise from this company. 


Next on our list is the business format franchise. 

This is by far the most popular franchising model. In fact, most people think about the business format model whenever they hear the word “franchise.”

Compared to the product franchise where the franchisee only gets to distribute a parent company’s products, a business format franchise allows a franchisee to operate under the company’s brand. 

This means that you can use their name and apply the same system that the franchise company uses in marketing your product or services.

What’s good about the business format model is that you get a thorough training on how things are done to get you started in your new franchise business. You can also get a detailed blueprint or success plan where important company procedures and other important details are laid out for you. 

Special Strong is one of those franchises that follow this same franchise model. With Special Strong, you get the benefit of in-depth training to assist you in all aspects of the business. At the same time, you get trained for  the skills you need to keep and grow your franchise. 

McDonald’s, Olive Garden, Bath & Body Works, Starbucks, and other similar franchises make use of the business format model. THis allows franchisees to become successful in opening their business, even for the first time. 


Next up is the investment franchise.

It’s true that starting a business costs a lot. But if you want to get involved in a large scale business, the investment franchise model would be the perfect choice for you. 

However, this franchise model requires a huge capital investment compared to other options given on this list.

This type of franchising is not for everyone, but it’s perfect for those who wish to gain more for their money with as little involvement in the business as possible. 

So how does this work?

As a franchisee, you actually become an “investor” into the business, like with large restaurants or hotels. 

All you have to do is invest the money or capital needed for the business and the business’ management team will handle the rest for you. 

This franchise option is best for those who want to enjoy their time and freedom. At the same time, you get a sure return on investment through an established business already. 


Last but not the least is the conversion franchise. 

Of all the franchise models listed here, conversion franchising is what you call a “hybrid” franchise. 

As the name implies, conversion franchising works by “converting” other businesses. In short, a franchisor recruits established operators in the same industry or network and works with them.

By doing the recruits, the franchisor rapidly  grows their brand by allowing other businesses in the same niche to operate as a franchise. Only this time, the recruited franchisee gets a complete makeover to trade and use the franchisor’s system and procedure in business.

This is perfect for both sides because the franchisor can easily extend their reach using an established business of the same nature with a growing customer base. On the other hand, the franchisee can take advantage of the parent company’s bulk purchasing power and marketing techniques to grow their business even more. 

Industries that adopt this kind of franchise model include real-estate brokers, HVAC and plumbing services, electricians, florists, and other similar companies that often provide professional services. 

How to choose the right franchise model

Now that you know the five different types of franchising models, the next step is to know which one is the right one for you. 

Doing so will depend on three important factors:

  1. benefits
  2. functionality
  3. Industry (market and demand)

You may want to start a franchise business with little personal involvement. This makes the investment franchise the best option for you. However, you don’t have that much capital to invest in a large scale business. So you go over the other options that work with what you have at the moment. 

Your business goals will also affect your decision. Where do you see your franchise business in the next five years? Do you want to grow exponentially in a few years’ time? Or are you willing to wait and grow your business until you have established it? 

By knowing your business goals, it’ll be easier for you to determine which one of these franchise models works best for your ideal business. 

Flexible as they may seem, franchising is not for everyone. 

What’s sure though  is that franchising offers a sure way of success if you’re willing to put in the hours and the effort needed to make things work for you and your business. With a franchise, you’re not going to start off from scratch. Instead, you get a proven strategy and marketing in place. You already have a product or service that is in demand and you get the support of the franchisor or the parent company to help get your feet off the ground running a successful business. 

Make a difference with the Special Strong Franchise

If you want to make a difference and start a franchise at the same time, Special Strong offers a gym franchise where you can offer expert adaptive and inclusive fitness training for the special needs population. 

Special Strong offers a turnkey blueprint for success, healthy competitive earnings and full training and support to get you started on your first franchise business. Best of all, you don’t have to break the bank since it’s a low cost franchise that you can start even if you don’t have a brick and mortar gym. 

If you would like to learn more about owning a rewarding Special Strong franchise, we encourage you to reach out to us today for more information.