Franchise Business Basics: Defining A Diverse Industry

The word “franchise” gets used a lot in the United States. Not only because franchises are one of the most important building blocks in the foundation of America’s robust economy, but because there are so many different types of franchise businesses. This also means that there are plenty of franchise opportunities for entrepreneurs and hardworking individuals who have the desire to drive their own success.

With a wide range of different franchise options to consider, it is important identify the different types of franchises and the differing systems that are common in franchise models. This article will outline two main sections of franchise definition: structure and industry.

Franchise Structure

Singular Unit Franchise:

This is the most basic structure in which a franchisee is responsible for one unit of operation. In this situation the franchisee is typically highly involved with the day-to-day operations.

Franchise Industries

There are several different main industries in which the franchising model is common.


These can range from full service auto repair shops to auto supply stores. Typically these franchises are purchased by people with a background or passion in the auto industry, but it is not necessarily a prerequisite for purchasing an automotive franchise.


This type of franchise can be anything from a convenience store to a clothing outlet. A background in retail is usually necessary for success with this particular type of franchise, as they are dependent on sales volume of physical product. The retail industry in general is not as stable as other franchise industries, which means that proper management and patience are key for owning this type of franchise.

Food Service:

Food service franchises, much like retail, can come in a wide variety of settings. They can be fast food restaurants, or more upscale dining. Also like retail, the food service industry can be highly volatile. One of the first things people cut out during a down economy is eating out, which can lead to lower profit margins for food service franchises.

Cleaning and Facility Services:

These franchises go beyond basic janitorial duties and encompass a full range of facility services focused on improving and maintaining commercial facilities. In comparison to the other franchise industries discussed this type of franchise is the most stable and reliable. The janitorial and commercial cleaning industry is growing fast and is less volatile which makes it a popular choice for savvy entrepreneurs.

If you would like to find out more about franchising opportunities and the industry as a whole, don’t hesitate to contact OpenWorks today, our experienced team will provide you with all the franchise information you need!