Product Distribution Franchise Examples

Distribution strategies depend on the type of product being sold.

Product distribution franchise examples. There are three methods of distribution that outline how manufacturers choose how they want their goods to be dispersed in the market. The franchisor selects such a franchise because the franchisor cannot reach all places but at the same time the distribution of the product is equally important. The trick is knowing what type of distribution you will need to achieve your growth goals. As the name suggests product distribution franchise is a form of business where the distribution of the product is dependent on the franchise.

It can be direct or indirect and it can leverage on several channels for growth. The five major types of franchises are. This is the most common type of franchise in which the brand grows and expands by selling elements of an already operating business to business owners to distribute their products. Distributor franchises are easy to start and usually require a small initial investment.

In a business format franchise not only does the franchisor license the franchisee to sell the franchisor s trademarked product or service but the franchisor provides the complete system or format for operating the business. Finding the right distribution mix also means balancing between owned and non owned channels. Distribution is one of the key elements to build a viable business model. Fast food franchises like pizza hut mcdonald s and burger king are also notable examples of business format franchises.

The reason is that the size of each transaction in traditional franchising is significantly larger than most business format. 2 product distribution franchise. Job franchise product franchise business format franchise investment franchise and conversion franchise. There are many types of franchises that can be categorized according to different factors like investment level franchisor s strategy operations marketing and relationship models etc.

Product distribution franchising more properly called traditional franchising does not as often come to mind when most people think of a franchise but is quite a bit bigger in volume than business format franchising.