When you think about your ideal franchise opportunity, what do you envision? The beauty in selecting a franchise is that you can design it around your needs, preferences and values. If the choices seem overwhelming as you consider the many factors to narrow down your list, a basic question to ask is, “which franchise model is right for me and my lifestyle?” We explore the three main types of franchise models: Brick and mortar, home-based and mobile.
Brick and Mortar Franchises
Brick and mortar franchises are part of the everyday landscape for most. You’ll find them in malls or as free-standing buildings, mostly in the retail, food and restaurant, hotel or business services industries. This model is a good fit for a franchise owner who prefers having customers come to their business as opposed to models that require significant sales and marketing efforts.
- Walk-in traffic
- Immediate exposure with signage and location
- Option to run franchise passively with manager as you look for other investment opportunities
- Can take advantage of economies of scale (marketing, inventory, staffing) if owning more than one location
- Significant capital is often needed
- Heavy ramp-up and planning period to start business
- Location selection key to success
- More time needed to invest in running the business
- May be difficult to reach new customers
Many years ago, the brick and mortar model was the only option. With increased technology, this is no longer the case. In fact, the Small Business Administration reports that approximately 50% of small businesses are home-based. In the franchise arena, home-based businesses are mostly in the professional services industry and include accounting, digital and marketing, and consulting. This model is ideal for someone who can stay focused and wants to be actively involved in their business.
- Lower overhead costs with no location to maintain
- Shorter ramp-up time to start
- Convenience and comfort of working from home
- Offers scalable business model – as clients increase, employees can be hired, and you can assume a more consultative role
- Flexible schedule
- May be hard to separate professional and personal life
- Defined territory may be limiting
- Requires a special skill set and may not involve
much human interaction
A mobile franchise offers many of the same advantages as home-based franchises. Mobile franchises also have lower start-up costs, are easy to start and offer scheduling flexibility. By definition, a mobile business is one that operates out of a vehicle or provides a service at various customer locations in the community. They are ideal for franchise owners who enjoy working in the field and are technologically and digital marketing savvy to help acquire customers. Examples of mobile franchises include home repair and maintenance services, pet grooming and child or senior care at home.
- Not location dependent
- Easier to deliver services to customers since you are delivering to them
- Technology can be used efficiently with scheduling apps, point-of-sale systems and communication tools
- Do not benefit from walk-in traffic so a proactive marketing approach is needed
- Other potential costs may arise such as buying gas, fixing vehicles, loss of time when traveling, etc.
A Franchise Model That Fits Your Lifestyle
When determining which franchise model is right for you, knowing how your business will fit into your lifestyle is key. Personality, company culture and the franchisor-franchisee relationship are also important considerations. Conduct due diligence, talk with franchise owners and get a sense of their typical week to make the best decision for you.
Does BirthdayPak Match Your Lifestyle?
BirthdayPak is a unique gift marketing program that connects restaurants and other local businesses to their ideal customer. It aligns most with the mobile franchise model as franchise owners network with decision makers at their respective businesses. However, making appointments and business operations can be performed at home or remotely. For more information on how BirthdayPak provides flexibility and sets franchise owners up for success, connect with us or call 888-680-7554.