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Will I be required to personally participate in the franchise I invest in?
This depends on the nature of the franchise. A ‘job franchise’ is a franchise in which the franchisee will do the work that provides the service to customers. The franchise usually takes the form of a trade supplying, selling or delivering products or services. If, for example, the franchise is for the mobile delivery of products or services then it will be the franchisee that drives the van and sells the products or provides the services to the customer. Usually in a job franchise, there are no employees at the outset - it is simply the franchisee operating the business by himself.A job franchise should be distinguished from a ‘management franchise’, in which the franchisee takes on a management role, mainly organising others to sell the product or provide the services to customers. A management franchise will have employees, often require premises and usually involves quite a lot of administration and marketing tasks.An ‘investment franchise’ is where a franchisee invests a significant amount of money in a franchise such as a hotel. The franchisee will often not work in the franchise at all, but will employ a professional management team to run the business. An investment franchisee will usually have experience in managing a large professional team. Sometimes an investment franchisee will run a number of fast food outlets, where not only will the franchisee employ managers for each outlet, but also a general manager to oversee the operation.
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