Welcome to the first of our 5 part series:
In the UK, a franchise offering is a proven business model that has been operating for a number of years. It’s a “business in a box” that is awarded to a franchisee to run in their own EXCLUSIVE territory following brand guidelines. Common confusion is with licenses and MLM which franchising is not. The territory, extensive training and ongoing support are key.
Franchising can be ideal for those that want to control their own destiny through running a business, but they may not have an idea of what that is or want to start something from scratch. So many businesses across so many industries and sectors are franchises. You will be able to find something that suits you, whether its food or services, education or activities. Like any business you should find something you’re passionate about, as a franchise does not mean guaranteed success, that is dependant on the amount of work a franchisee puts into it. Franchising definitely means you are, in business for yourself but not by yourself.
Financials are something to consider as there will be a fee to “buy” the franchise for a fixed term. Franchise fees will depend on the returns available. Some franchise set ups, for example with a home style set up, can come in at a low start-up cost maybe as little as a few thousand pounds, however larger set ups with premises or vehicles, stock and equipment can come into the hundreds of thousands but should be proportionate to the turnover and profits achievable within that business model.
As well as this upfront fee, franchises then work on either a % or fixed monthly fee. Some offerings may also charge for extra services and a national marketing levy, so make sure you research all the ongoing fees as well as looking at the upfront cost. Remember a franchise does not guarantee financial success and will always come down to the determination of the franchisee.
Click on the image above ‘What is Franchising’ to see Anne-Marie talking about this.
Take a look at the second part where we look into what the benefits of franchising are.
