Franchises Available to Entrepreneurs in New York

NY Franchise Law, Business in NY, Franchise

If you are serious about investing in a franchised business it best to consider the three basic type of New York franchises, typical, in the New York market.

The following are the major types of New York Franchises.

  • Business Format Franchises: In business format franchises, a company expands by supplying independent business owners with an established business, including its name, products, rules and trademarks.  The franchisor, generally, assists the independent owners in launching and running their businesses.  In return, the business owners pay fees and royalties to the franchisor.  In most cases, the franchisee also buys its business supplies from the franchiser or from approved vendors.  Fast food restaurants are good examples of this type of franchise.
  • Product Franchises: Also called a “trade name franchise.”  Product franchises involve the sale and/ or manufacture of products.  The business model covers the overall management of the sale of these products.  A franchisor supplies a product family to a franchisee who may, also, take on the identity, branding and intellectual property of the franchisor.  To obtain these rights, store owners must pay fees or buy a minimum amount of products regularly.  Exclusive brand-name stores are usually product franchisees.
  • Manufacturing Franchises: A manufacturing franchise is any business that uses components, parts or raw materials to make a finished good. These finished goods can be sold directly to consumers or to other manufacturing businesses that use them for making a different product. This type of franchise is common among food and beverage companies where the franchisor supplies the ingredients and the manufacturers mixes and packages the final product and / or distributes it for sale. For example, soft drink bottlers often obtain franchise rights from soft drink companies to produce, bottle, and distribute the final product.
There also exists various franchise types depending on the level of franchise opportunities provided, but, all in all, these three basic types comprise the vast majority of the type of franchise opportunities available in New York.

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