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Types of Retail Ownership: by Arsesande Lou V. Jaictin

The document summarizes 6 main types of retail ownership: 1) Independent retailer who builds the business from scratch alone; 2) Existing retail business taken over from others; 3) Franchise which uses another company's proven business model; 4) Dealership which licenses brands to sell; 5) Member network for group buying power without strict rules; 6) Network marketing which relies on recruiting others to also sell the products.

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Hanna Venz Jaic
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149 views10 pages

Types of Retail Ownership: by Arsesande Lou V. Jaictin

The document summarizes 6 main types of retail ownership: 1) Independent retailer who builds the business from scratch alone; 2) Existing retail business taken over from others; 3) Franchise which uses another company's proven business model; 4) Dealership which licenses brands to sell; 5) Member network for group buying power without strict rules; 6) Network marketing which relies on recruiting others to also sell the products.

Uploaded by

Hanna Venz Jaic
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Types of Retail

Ownership
by Arsesande Lou V. Jaictin
HELLO, DEAR STUDENTS!
WELCOME TO OUR
ONLINE CLASS!
I hope you are as ready as I am to start learning and
have fun. We're in this together, so let's respect and
support each other.
Types of Retail
Ownership
and
How Each Might Work
for You
HERE ARE A FEW OF THE
MAIN TYPES OF RETAIL
OWNERSHIP AND THE
ADVANTAGES,
DISADVANTAGES, AND
SUPPORT SYSTEM OF EACH.
1. INDEPENDENT
RETAILER

An independent retailer is one who builds his/her business from the


ground up. From the business planning stage to opening day, the
independent retail owner does it all. S/he may hire consultants, staff
and others to assist in the business endeavor
2. EXISTING RETAIL
BUSINESS

Someone who inherits or buys an existing business is taking ownership


and responsibility for someone else's hard work. The foundation has
already been set, and the baton is being passed to you. This is often the
scenario in a family business, where one generation takes over from their
retiring parents. There's great responsibility in carrying on the tradition,
especially if your parents built the company themselves.
3. FRANCHISE
Purchasing a franchise is buying the right to use a name, product,
concept, and business plan. The franchisee will receive a proven
business model from an established business. Be sure you are on
board with all the company's practices and what they stand for
because you'll be expected to represent those values in your store.
Clear knowledge of what costs you'll be expected to absorb and
when the parent company will be footing the bills is central to
sustaining a healthy relationship with your franchisor, as well.
4. DEALERSHIP

A licensed dealership is a mix of franchise and independent


retailer. The licensee has the right (sometimes this is exclusive)
to sell a brand of products. Unlike a franchise, the dealer can
sell a variety of brands and there are generally no fees to the
licensor. Dealerships may or may not be identified as an
authorized seller or by the company's trademark. Think of cars
and trucks as the most common example of a dealership.
5. MEMBER
NETWORK

This type of store is similar to a franchise or dealer except that the


connection to the larger brand name is about buying power for
inventory and services. In this model, you are not placed under
strict guidelines or rules that your store has to follow. And most
times, there is not even a % of sales you have to pay back every
month as long as you maintain a buying volume at a certain level.
6. NETWORK
MARKETING
Multi-level marketing (MLM) or network marketing is a business
model where the selling of products depends on the people in the
network. Not only is a product being sold, but other salespeople are
being recruited to sell that same product or product line.

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