How Many Types Of Food Franchises Are Available in USA

How Many Types Of Food Franchises Are Available in USA

Buying A Franchise Restaurant in the USA is a lucrative deal for many. Whether there is a recession or economic fluctuation, there is no drawback in the food business as it can be considered as one of the essential necessities of a human being.

It has been seen that the profit of this industry is quite lucrative as people prefer a known name or brand rather than new initiatives. That’s why; Buying A Franchise Restaurant USA is a very smart initiative.

Before entering an agreement, you must know how many types of franchises are available in the food industry so that you can make an informed decision while investing.

Types of Restaurant Franchise in the USA:

Master Franchise:
In this system, the owner of the restaurant or the master franchisor gives the full responsibility and control of all the franchising activities for a specific territory to a person who is known as the master franchisee. This is called the master franchise where the master franchisee will play the role of the franchisor for that certain area.

Single Unit Franchising:
These are the owner-operated franchise pattern. In this model, apart from being the owner, you have to act as the primary operator or the manager of the restaurant. It is also known as direct franchising which is quite popular for the national and local franchises in the USA.

Also Read: Why You Need a Franchise Attorney To Look After The Agreement

Multi-unit Franchising:
In this category, the franchisee generally buys more than one franchise from the franchisor. The growth and profit from those units are the responsibilities of the franchisee.

Company Owned Franchise:
The main structure of this business model is that the brand sets up its own office in a locality to help the franchisee to start the business. The office representative can recruit a team that will work closely with the franchisee.

The main aim of doing this is to create a brand image so that the consumer can connect with the brand easily.

Area Development Franchise:
The structure is quite similar to the multi-unit franchising but it involves a greater number of units and for a larger territory. In this way, the area developer franchisee can create brand awareness more rapidly.