If you want to start Own Business there are three option with you, Should you start business from Scratch? Should you buy an existing business from owners who are seeking to sell so they can retire? Or, should you buy a franchise?
About Franchising, Its sharing of Risk Of Business and Return also, Its called franchise of Proven business with ready to do business model.
Brands Offer franchise for getting effectiveness of their services/ reach of product to consumer in state of the art of business concept. There are three different model of franchising are FOFO( Franchise Own Franchise Operated), FOCO( Franchise Own Company Operated ), COFO( Company Own Franchise Operated)
In FOFO, Its Completely own by franchisee and Operated by franchisee, But there are two other business Model Of Franchising FOCO & COFO
About FOCO ( Franchise Own Company Operated)
It's a win-win situation for Investor and Brands, Its format where Brands knows how to represent their product Or have specialize in their service. So they are confident on their product and services and other side investor looking for invest in business but no time to operate or don't have knowledge about product/services. In this case FOCO model is best suitable option.
FOCO model ensure that both Investor & Brands Need to be taken care
About COFO ( Company Own Franchise Operated)
In COFO model Company reserve ownership of the business but share operation of store/branch. In this model brand is looking for working partner who can invest in business also. Brand will take care of part of operational cost also and offer margin to cover remaining cost and partner profit.