🥇 ▷ 7 Examples of【 Franchises】

These franchise examples arose as an alternative to business models traditional, having more and more popularity throughout the world.

What is a franchise and how does it work?

It is a business model that consists of a legal person called a “franchisor” granting another company the right to operate its business, the latter would be called a “franchisee”.

By granting you that right, the franchisor obtains royalties or fees previously agreed upon by the franchisee, that is, a fee for using your business.

Examples of franchises in the world The most popular!

1. McDonald’s

We started with one of the most famous businesses in the world, the fast food company that has reached almost all countries.

Altogether, the McDonald’s franchise It has 38,695 restaurants around the world, however, 36,059 are franchises, therefore, it only owns 6% of its restaurants.

This fast food chain has been working as a franchisor since 1955 and it is currently estimated that the fee required from the franchisee is over $45,000.

2.Subway

This fast food company is also a case of success and rapidly expanding, created in 1965, but, by 2019, it already had more than 40,000 franchises worldwide.

Among the requirements to establish a franchise contractSubway requires the franchisor to have a minimum equity of $80,000.

In addition, an initial fee of $15,000 and a weekly contribution of 12.5% ​​of the company’s total sales.

3. Coke

This industrial franchise was founded in the United States (USA) in 1866, producing the drink that it sells to franchised bottling companies.

This is one of the most profitable in the world, billing more than 32 billion dollars annually.

Likewise, it is one of the most recognized companies because its products are among the most purchased.

Its patented product is among the most consumed, in addition, it has a strategy of marketing that reinforces the brand according to the country in which it is located.

4.Starbucks

The starbucks franchise de café works with an industrial-commercial contract, so the franchisee can use its logo, machinery, as well as produce and market its beverages and food.

Among the main benefits of acquiring this brand is that it will provide all the guidance to the franchisee so that they can launch their store correctly.

In the contract are the conditions of the permits, as well as the duration of the same, approximately 10 years.

5.hertz

This is a leading car rental brand, currently, it has close to 10,100 franchises around the world, being the second largest business of its kind in the US.

With more than 500,000 vehicles in its fleet, it is present in approximately 150 countries.

To grant the franchise permit, it requires an initial fee that is between $20,000 and $50.

In addition, a monthly fee of 10% for completed deals.

6.Marriott International Hotel

Today it is the most operational hotel chain worldwide, taking into account that there are at least 1,400,000 rooms with 7,800 franchises in 130 nations.

To open a franchise, you must have an initial fee of at least 100 thousand dollars, while royalties would remain at 9%.

7.KFC

Referential company in terms of fried chicken, this is Kentucky Fried Chicken (KFC), a franchise famous throughout the world and with more than 70 years of history.

It has a presence in more than 140 countries around the world, being one of the most successful franchise examples due to the popularity of the fried chicken recipe.

However, to acquire a KFC franchise you must have a minimum of 1.5 million dollars of net worth, in addition, a royalty requires 5% of income.

franchise types

to. Commercial

In which the franchisor gives its franchisees everything they need to sell their products.

That is, it replicates the form of businesses in which success has already been proven.

b. industrial

Examples of industrial franchises are those in which the franchisor gives permission to the franchisee to manufacture and market its products, as well as Starbucks.

c. Of production

In this case, the franchisor is responsible for producing the products and the franchisee for marketing them.

All this is in a contract in which the franchisees agree to sell the products.

d. Of distribution

The franchisor must resell the goods or services designed by other brands that have been its franchisees.

This case is the other way around, that is, the franchisees sell their products to the franchisor.

and. Of service

As its name indicates, these are focused on providing a specific service, for that, the franchisor is the one who will determine what type of service is granted.

For its part, the franchisee must comply with the former’s requirement to provide the service to customers.