A Franchise is a system in which the trademark is given by the franchisor or owner to the franchisee to deal with the selling and distribution of the services or product by using the business system. There are many types of franchise models which are as follows
Product Franchise
Job-Franchise
Management Franchise
Product Franchise: The product franchise is a type of franchise that is dependent upon the franchisee. Here the franchise takes all the responsibility for goods and services. Here the franchisee doesn't have to follow any business model or system; they just work as dealers and just sell the goods and get them from manufacturers. So this is generally done for retailers who deal with the selling of branded or specialized products.
Job-Franchise: This franchise is run by individuals with small or medium-sized businesses. It can be working from home or any mobile business which is run by the individual or owner.it can be managed with very little capital.
Management Franchise: This type of Franchise can be easily managed because it runs totally according to the rules of the franchisor.
The franchise model gives many benefits and there are some drawbacks also of it. Let us discuss its advantages and disadvantages.