Forms of franchising
In this section, we can determine what powers the franchisee has.
Direct franchising: Business is opened on the basis of a contract. In this form, the competition between franchisees is very low.
Multiple franchising: A rarely used form of franchising in which the franchisee acquires the right to open several outlets under one contract. But in turn, the franchisor can sell the right to the territory to several entrepreneurs on the basis of a contract. The competition of franchising in this form is very high.
Territory development: The exclusive right to open several enterprises in one territory. Moreover, this right is not sold to anyone else.
Master Franchise: In this form of franchising, the franchisee acts as a franchisor and has the right to open a business in a certain area and sell franchises. This franchisee (considered a franchisor for companies or entrepreneurs who franchise it) will control and receive a share of royalty income, as well as enjoy other benefits. This form is also known as sub-franchising.