Many restaurants are part of a franchise. For some restaurants, this is immediately noticeable, but in others, not at all. This is because there are different franchise models, each with their own characteristics.
In this blog post, we explain the different franchise models in the world of delivery restaurants. After reading this post, you’ll have learned: The different models available Their characteristics Their advantages and disadvantages After reading this blog everything will become clear.
What are the different franchise models?
No two franchises are the same. For the same reason, there are also different franchise models. Below we’ve written about the most common franchise models.
First generation franchise
A first generation franchise focuses mainly on products, and is typically used in the dealer system. Think for example of automobile repair shops and petrol pumps.
A franchise model closely related to a first generation franchise is the trademark franchise. Again the focus is mainly on products. The Coca Cola brand is an example of a trademarked franchise.
In the world of delivery restaurants, the first generation franchise does not really exist. A much more common model is the hard franchise, so named because hard agreements are made between the franchisor and franchisee.
McDonald’s is the world’s best known hard franchise
Each location is very similar, helping create trust in the formula’s success. The hard agreements ensure each party knows where they stand, but leaves little room for individual actions and creativity.
Now that you know what a hard franchise is, you can also guess what a soft franchise is. The agreements are much more flexible and leave a lot of room for the individual entrepreneurship of the franchisees. Often only a logo or name is shared and it’s difficult to recognize the business as a franchise. There are, however, also cases with stricter agreements and controls.
Franchise models for delivery restaurants
Although first-generation franchises are infrequent in delivery restaurants, hard and soft franchises are much more common. These models can then be a great advantage for delivery restaurants.
As a franchisee in a hard franchise, you can benefit from the position, knowledge, and money of a large organization. For an individual entrepreneur, this can provide security, and this provides a significant advantage for a novice entrepreneur. Unfortunately, if you join a hard franchise, you lose control over what you can and cannot do in your business.
Joining a large franchise can result in a loss of decision-making powers
If you’d like to retain decision making and personality, but still benefit from the extra security of a franchise, consider joining a soft franchise. You can then take advantage of the trust that a well-known logo delivers, but you can remain unique.
Examples of franchise models
Many delivery restaurants also have a ‘normal’ restaurant. This is why most delivery restaurants can also benefit from the advantages of a franchise. And whether these have separate locations or operate on the same premises doesn’t really matter.
The best-known restaurant franchise in the world (which has also recently become a delivery restaurant) is, of course, McDonald’s. It will come as no surprise to you that this is a hard franchise. All restaurants affiliated with McDonald’s look alike and benefit from the franchisor’s well-known name. The same goes for the delivery restaurants De Beren and Domino’s.
Soft franchises are less common among (delivery) restaurants, but do exist. They are much less noticeable, because each franchisee works as their own entrepreneur. An example of a soft franchise in the Netherlands is JRE-Nederland. This is an association of restaurants that retain their unique style, but occasionally carry out joint actions.
Help from Cashdesk
It can be significantly beneficial to work together as a hard or soft franchise. As a franchisee, are you looking to take your restaurant to the next level? CashDesk can help you. CashDesk offers smart delivery software for delivery restaurants. This allows you to maintain an overview of the state of affairs within your location.
Interested in the opportunities? Contact us, or request a free demo.