It is always best to use an established business model when developing a franchise. This is a plan that a parent company implements to generate income and help make a profit. Good business models improve the chances of your franchise being successful. You should always do your research on the territory, location, and availability of customers.

A good business model is the foundation on which you can build a business. There are many franchise models available and some of the best include Anytime Fitness, Papa Murphy’s, and Subway franchises. These models contain some of the same principles and are based on good business practices.

• Fitness franchise models include finding a compact and neighborhood gym where members can access the business 24/7. The model includes surveillance software and technology. There is also a large recurring revenue stream by controlling rates and service availability. Find a fitness franchise that relies on cleanliness, safety, and minimal staffing.
• Take-out and bake pizza franchises are unique in that they are a take-out business or restaurant and are not baked in the store. Customers bought prepared, raw pizza and took it home to bake. Less investment is required as there is no cooking, few dining components or no need for customer cleaning. Expenses include employee salaries that can be minimal, store front that is also minimal, and inventory that can vary due to combinations offered. Since the expenses are somewhat low, the profit potential is high.
• The fast food franchise is attractive as it can streamline operations and provide fast, friendly service. A sandwich franchise advertises and uses fresh ingredients and there is little to no cuisine in the store. This model requires inventory, employees, and a store, but the payoff is potentially great.
• Service franchises need to make sure discounts are offered and customer service is high. This best franchise model is one that focuses on location-finding ease, high customer service, and relatively low cost.

A franchise business model must also include the ability to communicate with and receive advice from the parent company. Profits must be shared with the majority of the franchisee. Franchise models provide standardized practices. The logo is often familiar to the public and practices should follow the model of the parent company. A franchise business model generally does not vary from site to site, and this creates loyalty and brand recognition for the customer.

For help determining a model for your franchise, seek the advice of franchise experts, including franchise consultants. They can provide you with sample documented templates with contracts, basic franchise rules, regulations, and other documentation to review and adjust accordingly for your own business model.