1. Item Franchising:
This is the soonest kind of franchising. Under this, vendors were given the option to disseminate products for a maker. For this right, the seller pays an expense for the option to sell the trademarked products of the maker. Item franchising was utilized, maybe interestingly, by the Singer Corporation during the 1800s to circulate its sewing machines. This training consequently became famous in the petrol and auto enterprises moreover.
2. Assembling Franchising:
Under this game plan, the franchisor (producer) gives the seller (bottler) the restrictive right to create and appropriate the item in a specific region. This kind of franchising is regularly utilized in the soda business.
3. Business-design Franchising:
It is an ongoing sort of franchising and is the most famous one as of now. It is the sort that a great many people today mean when they utilize the term franchising. In the United States, this structure represents almost three-fourth of all franchised outlets.
Business-design franchising is a course of action under which the franchisor offers a wide scope of administrations to the franchisee, including marketing, publicizing, vital arranging, training, creating tasks manuals and norms, and quality–control direction.
The International Franchise Association (IFA) of America has characterized business design franchising as follows:
“A franchise activity is an authoritative connection between the franchisor and franchisee in which the franchisor offers or is committed to keeping a proceeding with revenue in the business of the franchisee in such regions as expertise and training. Wherein the franchisee works under a familiar trade name, design or potentially methodology claimed or constrained by the franchisor, and in which the franchisee has or will make a great capital interest in his business from his assets (Mendelsohn 1979).”