Those entering the world of franchising may find that the industry is full of concepts to learn. Among these are the types of franchising arrangements. The three most popular systems are the product distribution franchise, business format franchise and manufacturing franchise.
The manufacturing franchise system allows the franchisee to manufacture and sell products using the franchisor’s name and trademark. The business format franchise, on the other hand, provides franchisees with a full business format including strategic planning, marketing, advertising and quality-control guidance. In the product distribution franchising system, franchisees are given the license to sell products using the franchisor’s trademark and brand name.
All formats have pros and cons, but for those who are only starting their entrepreneurial pursuits, the product distribution franchise is the best option.
So how is a product distribution franchise better?
Big Savings: Cut On Capital Expenditure and Operation Costs
Unlike manufacturing franchises, a product-distribution franchise can start operations with fewer costs upfront. They do not have to acquire machinery to produce the goods, allowing them to focus on hiring quality customer service staff and searching for the best delivery options.
Product-distribution franchises also have fewer operation costs as they do not have to source raw materials and manufacture them into products. Plus, with a good brand name, a product-distribution franchisee does not need to spend too much on marketing.
More Control over Your Business
Compared to the business format franchising, product-distribution franchising gives you room to make business decisions.
A common cause of discontent among franchisees is how franchisors control their franchisees too rigidly, setting policies on even the minutest detail. From a business perspective, this can disadvantage franchisees as they become largely dependent on their franchisor and this may slow down their progress in some aspects as they cannot implement changes without the approval of their franchisor.
As a product distribution franchise, Fully Promoted franchisees enjoy the abovementioned benefits. Plus, as a global leader in providing promotional and digital marketing solutions, you are assured of a proven and lucrative business model.
Jumpstart your entrepreneurial career with Fully Promoted. Call us today.