Franchises we’d love to have in Egypt - Types of Franchises

As franchises give business owners the chance to launch a finished operation and ready-made business with established branding and operational procedures. Types of franchises are: Job Franchise, Business Format Franchise, Product Franchise, Conversion Franchise, and Investment/Financial Franchise. With the given information, we can't wait to see the following brands in Egypt: Five Guys, Cheesecake Factory, Taco Bell, and P.F. Chang's.
What is a franchise?

Macdonald’s, Starbucks, Gold’s Gym, Krispy Kreme and Baskin Robbins and more of these brands we love are a product of franchise investment!

You might think “is franchising a good option to invest my money in?” The answer is definitely yes! 

As franchises give business owners the chance to launch a finished operation and ready-made business with established branding and operational procedures.

Investing in an already-well known brand or food place can be tricky but. it could also make you a fortune! Your strategies, business plans and processes are the aspects that can define the success of this franchise investment.

However, franchise business is not just an investment in a food chain, it’s way more than that! With that said, let us delve deeper on the types of franchises.

What is a franchise?

A franchise is a kind of license that enables a franchisee to use the franchisor's brand name to sell goods and services by having access to the franchisor's secret business techniques, procedures, and trademarks. The franchisee typically pays the franchisor an initial start-up fee and yearly licensing fees in exchange for obtaining a franchise.

The franchisee can market and sell these goods and services by acting as a parent company branch. It might even use franchising rights to sell these goods through its own company.

One or more people or businesses may receive franchising rights from the franchisor. As a result, if only one person acquires these rights, he or she will be the sole retailer of the franchisor's goods in a particular region or market.

In exchange, the franchisor offers the franchise its goods, services, technological expertise, brand name, and trade secrets. In some instances, it even offers assistance and training.

Characteristics of Franchising


First of all, a franchise agreement allows the franchisor to authorize the use of the franchise's intellectual properties, such as patents and trademarks.

Secondly, the franchise pays a fee (or royalty) to the franchisor in return and might even be required to split some of his profits. Instead, the franchisor gives the franchise its products, services, and support.

The franchising agreement is the last document both parties in a franchise sign. In essence, this agreement is a contract that specifies the terms and conditions that apply to the franchise.

What are the types of franchises?

What are the types of franchises?

Any kind of business can be franchised because it is a relatively flexible method. There are many different types of franchises, and they can be divided into groups based on a variety of criteria, including the level of investment, the franchisor's strategy, operations, marketing strategies, and relationship models.

Job franchises, product franchises, business format franchises, investment franchises, and conversion franchises are the five main categories of franchises.

Job Franchise

Usually, a person who wants to launch and manage a small franchised business alone chooses a home-based or low-investment franchise. The franchisee typically needs to invest in a small amount of stock, equipment, and occasionally a vehicle.

This category includes a wide variety of services, including travel agencies, coffee carts, domestic lawn care services, plumbing, drain cleaning, commercial and residential cleaning, cell phone accessories and repairs, real estate services, shipping services, pool maintenance, event planning for businesses, childcare services, etc.

Business Format Franchise

This type of franchise allows the franchisee to get to use the franchisor's trademark, the franchisee also gains access to the entire system for running the company and promoting the good or service. The franchisor provides initial and ongoing training as well as support, as well as a comprehensive plan and procedures for almost every aspect of the business.

Business style when discussing franchise systems, is typically brought up as the most well-known type. Franchise opportunities exist in more than 70 different industries, with fast food, retail, restaurants, business services, fitness, and other sectors being the most common

Product Franchise

Franchises that are product-driven are built on supplier-demander relationships, where the franchisee sells the franchisor's goods.

Although the franchisor typically does not give franchisees a complete operating system for their business, it does license its trademark. Large products like automobiles and auto repair parts, vending machines, computers, bicycles, appliances, etc. are the focus of most product franchises.

Franchises for product distribution account for the largest share of total retail sales. Exxon, Texaco, GoodYear Tires, Ford, Chrysler, and other automakers are some well-known product distribution franchises. Franchise owners will occasionally grant licenses for not only distribution but also a portion of the production process, as is the case with the makers of Coca-Cola and Pepsi soft drinks.

Conversion Franchise

A transition from typical franchise relationships is conversion franchising. Many franchise networks expand by turning independent companies operating in the same sector into franchise units.

Franchisees adopt brand names, marketing and advertising strategies, a system of training, and crucial client service standards. They typically boost procurement savings as well. In this model, the franchisor has the potential for very rapid unit and royalty fee revenue growth.

Real estate brokers, florists, businesses that provide professional services, and home-service providers like plumbers, electricians, and air conditioners are a few examples of industries that frequently use conversion franchising.

Investment/Financial Franchise

These are typically large-scale projects that demand a sizable upfront investment, like hotels and big restaurants. Franchisees typically invest money in the business, hire either their own management team or the franchisor to run it, and then sell it for a profit.

Check out how to turn your business into a franchise.

With that said let's jump in to the best part!

Franchises we'd love to have in Egypt one day

When we talk about brands we'd love to see in Egypt one day we'll surely tackle some food places.

Five Guys

Five Guys

Speaking of food places franchises, how can we not mention five guys? Five Guys is the most lovable burger and fries places around the world and the most popular as well. It was founded in 1986 and have been loved by people all over the globe. Sometimes people travel especially to try it out.

Cheesecake Factory

The cheesecake factory

One of the best dessert places in the world, this place is of the most anticipated place that would come to Egypt. It was first founded in Beverly Hills, California in 1978.

Taco Bell

Taco Bell

Don't we all crave some tacos and burritos?! And who serves them better than Taco Bell? It was founded in 1962, one of the most famous American fast food chains and their menu has a variety of the most delicious Mexican food. We think that we'll see Taco Bell soon in Egypt!

P.F. Chang's

P.F. Chang's

P.F. Chang's is an American-based chain of casual dining restaurants. China Bistro was established in 1993 and serves iconic, authentic and delicious Asian and Chinese plates.

Share with us what other places you'd like to see through our Instagram post.

If you'd love to see one of these places here in Egypt; we'd love to help to get them here!

We, at Tayf, can help you through the franchising process from the thought to the implementation! Contact us and let us support you.

March 21, 2022

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Franchises we’d love to have in Egypt - Types of Franchises
Reem Tarek
Junior Content Creator
March 21, 2022

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