The Power of Franchising in the Digital Sector 

Franchising as a model for business expansion and distribution actually began in the nineteenth century, with the first American company adopting the model in the 1940s. Jump ahead almost 80 years and anyone can see that franchising has transformed the global business landscape. 

From restaurant chains to hotel chains to hair salons to cleaning services to auto maintenance — franchising is THE way to go when looking to start a new business or rapidly expand your existing business. 

With today’s cloud-based applications and internet connectivity, a new frontier of franchising is growing into a revolutionary force that will impact how many industries operate their business. Digital Franchise Concepts are becoming one of the fastest growing areas of the franchising industry. 

Franchise Sectors 

Franchising has truly become a mainstay in modern business, as is demonstrated by the number of different industries that are involved in franchising. Truly, any type of business can use franchising as a framework for rapid growth and expansion. 

Here are the main categories: 

Accounting & Financial Franchises Advertising & Marketing Franchises

Automotive Franchises Business Opportunities

Business Services Franchises Children’s Franchises

Cleaning Franchises Coffee Franchises

Computer & Internet Franchises Consultant & Business Broker Franchises

Courier Franchises Employment & Staffing Franchises

Entertainment Franchises Fitness Franchises

Food Franchises Golf Franchises

Health & Beauty Franchises Healthcare & Senior Care Franchises

Home-Based Franchises Home Services Franchises

Industrial Franchises Mailing & Shipping Franchises

Moving & Storage Franchises Pet Franchises

Photography Franchises Printer, Copying & Sign Franchises

Real Estate Franchises Restaurant Franchises

Retail Franchises Security Franchises

Sports Franchises Tax Franchises

Training Franchises Travel Franchises

Vending & ATM Franchises

Digital Franchising 

However, let’s not forget, a “franchise” is a business relationship where a parent company allows a franchisee to sell their products and services using the parent company brand, for a fee. A “digital franchise” follows the same principle, except it involves online and digital products. The parent company develops a digital product, like an online marketing tool, and they allow franchisees to sell it under the parent company brand. 

Basic advantages of digital franchising and Digital Franchise Concepts include: 

  • No inventories
  • No physical store location
  • No employees
  • Not MLM
  • All internet based
  • Work from home or anywhere 
  • Unlimited income potential

 Should I Consider Digital Franchising?

Thousands of industries could benefit from adopting the digital franchise approach and Digital Franchise Concepts. It is an ideal model for:

  • Low-tech verticals, where local businesses are trying to connect with local consumers.
  • Secondary and tertiary markets that lack a digital connection to their local consumers. 
  • On-the-ground entrepreneurs who understand their local market, where local content management and oversight is crucial to user acquisition and retention. 

If your company could benefit from more localized representation, Digital Franchise Concepts are an ideal strategy for expansion. In this franchising model, franchisees purchase the sole rights to certain geographic areas and earn a profit from mobile and web eCommerce in their exclusive territory. Digital franchise owners possess the rights to the market, and are granted rights to use the parent company’s brand name, training, systems, and customer support.

What are the Benefits of Owning a Digital Franchise?

Digital franchising offers those wanting to own and operate a business many opportunities to quickly and easily grow a profitable franchise. And the benefits over more traditional brick-and-mortar franchising are legion. Among them are:

Lower start-up costs and lower overhead

The franchisee typically pays an initial start-up fee plus regular royalty fees that are far less than the cost to start a traditional, brick-and-mortar operation. 

Minimal team management 

The parent company provides web and design engineers, customer service and support staff, while the franchisee focuses on local sales and marketing.

Owning an online company with low-tech knowledge 

A digital franchisee only needs a basic understanding of technology development, hosting, digital marketing, and design to be able to operate a digital franchise. 

Franchising is by no means limited to certain industries. In fact, almost every sector has a hand in franchising. Whether you are interested in a service franchise, product, a specific method of doing business, or even a unique technique, it is possible. There are no restrictions on what a franchise model may look like, as long as it has the ingredients that make up the special relationship between a franchisor and franchisee. 

Ready to learn more about digital franchising and the opportunities that are available in your area? Why not speak with a Franchise Guardian consultant today? Contact us online and request more information or a consultation. 



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