FranchisingApril 15, 2021 2021-09-29 11:42
Why Should You Consider It?
Choose to go down the franchising route and you’ll be able to rely on us for ongoing franchise support. To learn more about how forming your own franchise network would help you, keep reading...
An Introduction to Franchising
In simple terms, franchising is a method that enables you to quickly expand your business. As a ‘franchisor’, you’d grant an independent business person, or ‘franchisee’, the right to use your intellectual property, branding, model, and processes.
As a franchisor, it would be your responsibility to prescribe exactly how you want franchisees to operate the business. To do this, you would provide training and define the processes and procedures they must follow, using the systems you’ve developed. On an on-going basis you would support your franchisees, providing guidance and services to enable them to maximise the performance of their business. In return, the franchisee would pay you an upfront franchise fee, to acknowledge the right to use your brand and the transfer of your knowledge and experience, and a royalty, or management service fee on an ongoing basis to pay for the support you provide to help them set up and run their business. The franchisee would set up their business under your umbrella in a geographically defined area known as a ‘territory’, helping to build the profile and market share of your brand.
Remember, these budding entrepreneurs will find it much easier to achieve financial independence with your assistance and backing. In fact, recent studies suggest that 80% of new startups fail in just five years, while 80% of franchises succeed within the same time period. What’s more, it’s estimated that there are now more than 900 franchised businesses in the UK alone. These cover a broad range of industries from fast food to education. While the UK franchising industry as a whole is now worth approximately £17,000,000,000.
How You Would Benefit
Move forward and enlist Franchise Focus, and you’ll get all the franchise support you require. Once we’ve helped you establish yourself as a franchisor…
The Components of a Franchise Revealed
Our franchise consultants in the UK will work in collaboration with you to ensure that all of the aspects below are considered and agreed upon.
In Order to Become a Franchisor You Must Have:
Your business will be evaluated to see if it meets this criterion by a trained franchise consultant during a comprehensive feasibility assessment.
The Difference Between Franchising and Licensing
There are strong similarities between franchising and licensing. Both involve the use of a given company’s brand and intellectual property, as well as the payment of regular fees. However, one key difference is that in contrast to franchisees, licensees aren’t necessarily required to precisely replicate the business model of a licensor. The distinction between franchising and licensing is explored further here:
|Permits use of the owners IP - trademark, corporate style, systems|
|Owner exerts firm control over the use of the IP|
|Rights are granted for a specific term|
|Requires precise replication of the owners complete business model - methodologies, processes, procedures, documentation|
|The business is operated in a dedicated and fully accountable manner|
|The owner provides training in every aspect of business operation|
|Owner exerts control over compliance and requires the oporator to accept full responsibility, reporting accordingly|
|Owner provides ongoing assistance to the operator|
Rest assured that as part of the extensive franchising advice you receive from Franchise Focus, you’ll be told whether your business is best suited for franchising or licensing.