Different Franchise Models

When you decide to franchise your restaurant business, it is often confusing to choose from the different models available because of the necessity to be in favor of both you and your franchisee. This is one part of the Franchise Agreement. Here are a few models that you can choose from based on your requirements.

1. Franchise Owned Company Operated (FOCO):

In this type of model, the franchisee owns or invests in the restaurant but does not take part in the day-to-day operations of the restaurant. The company has to handle the operations/the smooth functioning of the restaurant. Franchisee just remains as the money provider, and hence as an owner.

2. Company Owned Franchise Operated (COFO):

In a COFO model, the company invests majorly in the outlet and the franchisee takes care of the operations. The franchisees usually build the brand image in the area that they are responsible for.

3. Master Franchise:

If the brand presence in another country or state or city, they usually go for a Master Franchise model to avoid the headache of overseeing the operations in all the areas they franchise. A master franchisee is responsible for further expansion in that region. He/She will oversee operations there and handles franchising. This model is commonly opted when a brand is international and would like to expand globally.

4. Joint Venture:

A joint venture is usually preferred when an international company wants a tie-up with a local company, especially that which has a nation-wide recognition. The local company will be entirely responsible or will own the brand in that country. They treat it as their own brand and take it forward.


Hope this article helped you get an idea about the various types of franchise models. Do reach out to SelectDine if you need any further help about franchising.