Franchise Business Models:-
Ashu Tulsyan
Talent Acquisition | Head Hunting |Leadership Hiring| Staffing | Market Intelligence & Mapping| IT & Non-IT Recruitment | Campus Recruitment|
There are 4 types of franchise models:
"Varied Franchise Models and Their Structural Variances"
Company Owned Company Operated (COCO):
COCO is a model where the franchise store unit is owned by the brand and is run by the brand. It has nothing to do with franchising in the least. As a result, the franchise is funded entirely by the company. Employees of the brand run the franchise. Example: Reliance Jio Mart, Bigbazar.
Company Owned Franchise Operated (COFO):
This is where the company invests in the franchise business and the franchisee runs it according to the company's guidelines. This is unusual and uncommon in the market because most businesses that invest in expanding their operations choose to do so by themselves.
Franchise Owned Company Operated (FOCO):
The franchisee is the one who owns the property and is responsible for all additional capital expenditures. The store/outlet operations are managed by the franchising company. It is also known as Franchise Invested Company Operated. Example: Bistro57, Kalyan Jewelers.
Franchise Owned Franchise Operated (FOFO):
The company gives the franchise investor its brand name in this FOFO model. They do so in exchange for a non-refundable (franchise fee) and a predetermined period. The brands decide on the prices and items for the outlet. As a result, the franchise investor is the store's owner, and the franchise must bear all operational costs. Also, the Franchise is required to pay the Brand a percentage of income (royalty). This model is the most used in the marketplace. FOFO model example: Bikanervala, Tupperware.
Source-Linkedin