Our franchise network offers three main types of franchise models, each differing in investment requirements and the level of franchisee involvement in daily operations. These models are designed to align with various business goals and strategic preferences.
Below is a detailed overview of each format
1. Hard Franchise
The hard franchise represents a traditional franchise business model in which the franchisee fully finances the setup and operation of the business.
This model includes all aspects of business management—ranging from equipment and operating expenses to marketing—supported by guidance from the franchisor.
- Initial Investment: Covers all costs related to the construction, setup, and furnishing of the business.
- Level of Involvement: The franchisee has full autonomy over branch management and is responsible for performance, service quality, and compliance with brand standards.
- Ideal Candidate: Best suited for experienced entrepreneurs with sufficient capital who seek complete control over their business operations.
2. Soft Franchise
The soft franchise follows the same operational model as a traditional franchise but significantly reduces upfront costs.
In this model, the franchisee leases equipment and infrastructure from the franchisor for a monthly fee, making it more accessible to those with limited initial capital.
- Initial Investment: None. The franchisee avoids capital expenditure on equipment and facilities, instead paying a fixed monthly rental fee.
- Level of Involvement: As with the hard franchise, the franchisee manages the branch independently and is accountable for its success and adherence to brand standards.
- Ideal Candidate: Ideal for entrepreneurs seeking a lower barrier to entry while maintaining hands-on involvement in the business. Also well-suited for first-time entrepreneurs who are driven but lack the capital to launch a business independently.
3. Economic Franchise
The economic franchise model differs in that the franchisee provides the initial capital investment, but day-to-day operations are fully managed by the franchisor.
This setup allows the franchisee to benefit from a passive income stream while relying on the franchisor's operational expertise.
- Initial Investment: Includes all expenses related to the construction and outfitting of the business.
- Level of Involvement: The franchisee contributes financially but delegates the complete operation and management of the branch to the franchisor.
- Ideal Candidate: Suitable for investors seeking passive income from a professionally managed business. Also ideal for property owners who wish to generate additional income from business operations alongside rental revenue.