What is franchising?
Franchising in its essence is a partnership between two entities, the franchisor and the franchisee. A franchisor is the person or a group of people who own a company, the franchisee is a person who wants to open a franchise business by using that company’s name. If the idea of starting a business from scratch is intimidating, then perhaps consider starting a franchise business. This article will highlight what exactly is franchising and why it is getting increasing popular.
What is franchising?
Franchising is a great way to become an owner of a small business. There are three different types of franchises which you can choose from, they vary in terms of your position, your input into the business and the amount of involvement of the franchisor. The three types of franchises are; the business format franchise, product distribution franchise and management franchise. Each franchise operates differently and in this guide you will find the differences between the three.
Have you always dreamt of being your own boss or being responsible for your own income, but never quite been sure how to do it? Maybe you feel like you need some extra support in the structuring of a business or think that you would miss a peer support network that being employed gives you. If this sounds like you then maybe franchising is for you.
The thought of establishing your own business, where you can be your own boss and steer your business in the direction in which you’d like it to go, remains only a dream for most people. However, if you’re among the few who have been brave enough to start a small business, has turning it into a profitable franchise ever crossed your mind?
The prospect of quitting your day job and becoming your own boss can be very appealing and is the most common reason for venturing into franchising. If you are considering taking this step yourself, there are, however, several things you should be aware of right from the start. Although it may not seem that way, the decision to buy a franchise can quickly be regretted, if you don’t realise the challenges and nuances it entails, since underestimating them can have severe future consequences.
Franchising is an excellent way for individuals to start a business while benefiting from support, training and branding from a larger, more experienced company. The 2018 British Franchise Association (BFA) Natwest franchise survey highlighted a sharp rise in under-30s starting franchises and a high rate of female entrepreneurship.
A pharmacy business can be lucrative and starting from scratch is one of the best ways to own one. However, establishing a pharmacy, even a small one is not an easy task, so it can be easier to buy an existing pharmacy if you find one for sale with potential growth. With so many laws, rules and regulations that you must adhere to before starting a pharmacy, buying an already existing pharmacy or franchise will make things simpler for you. However, starting your own profitable pharmacy business from scratch is possible and may be more satisfying than buying one.
Franchising is gaining popularity in the modern society due to its numerous benefits. Essentially, a franchise is a permit offered by a company to authorise you to do a particular commercial activity. For instance, a franchise authorises you to use the products, services and brand name of a specific existing company for commercial purposes. The franchisee gets the franchise from the franchisor. This gives the franchisee an opportunity to sell the franchisor’s goods or services. The franchisor communicates or provides everything to operate a franchise. Opening a franchise is easier than starting your own enterprise. The franchisee enjoys brand equity, marketing and operational support.
When it comes to running a business, you should always be striving to grow and improve, and there will normally come a point when your business is ready to expand. This will usually occur when your business has been up and running for some time and you are making a steady increase in the business profits. At this point in your business venture you will need to look ahead and shift your focus on expanding your business. A profitable business should not remain stagnant as this can cause problems and can even lead to failure, therefore always strive to do more and expand your horizons.
If you are thinking about running a franchise and don’t want to start from scratch, you might want to look at buying an existing franchise. Franchising is a great method of owning and operating a small business because it has a proven method of success. Buying a franchise has its benefits, for instance it may even allow you to have an easier, smoother process of getting funding.
So you have finally taken the plunge and are either starting a franchise from scratch or have bought an existing branch. If you are thinking about running a franchise as a small business, you should have a good idea of what it takes to run it, from the day-to-day operations to the administration tasks. You should have also decided how involved you will be in the daily running of the business.
The British Franchise Association (BFA) together with HSBC UK have launched another year of Franchise Awards, celebrating the success of franchisees and franchisors. The entries for the 2018 franchise awards are now open and all franchisors and franchisees in the UK are encouraged to get involved, and take part in the prestigious industry event.
You will need to raise finances to fund your franchise business. It might be possible that you have to deal with hefty start-up costs that will cover the initial franchise fee as well as buying and/or renting the premises. You will also have to deal with ongoing costs that you need to cover, especially at the beginning where you will not be making a great amount of money.
If you decide that you are ready to take on the world of franchising and want to invest in a franchise business, then there are certain things you need to consider. These include skills and attributes that make a good franchisee, choosing and buying the type of franchise, as well as actually running the franchise on a daily basis.
A franchise agreement is a binding contract between the franchisor and the franchisee of a franchise. It’s a lengthy document of around 40/50 pages and it requires a thorough inspection as you need to make sure you fully understand all terms and conditions of the agreement, to avoid any surprises. The agreement will highlight all the expectations and obligations that your franchisor will have of you.
There are many reasons as to why you have decided to sell your franchise, from a retirement to wanting to invest in another business opportunity. Selling and buying an existing franchise is also known as a ‘re-sale’. You have to prepare for your re-sale from the very beginning of your franchise career if it is possible. These simple steps will help you get organised and prepared for the re-sale.
Franchising can be a great sector to join, especially now when it is seeing an all-time high in terms of revenue as well as providing a record number of jobs. It has been a huge contributor to the UK economy and it’s business model is responsible for it’s success. Choosing a franchise to invest your time and efforts in can be difficult, however in this article you will find six factors to consider when looking at your options.
If you are thinking about buying a franchise and starting one from scratch seems daunting then perhaps consider buying an existing franchise. There are many benefits about buying an existing franchise, which is referred to as a re-sale. However, you need to carry out full research in order to get a grasp of the situation of the franchise. There are some major bases you need to cover, and in this article it will all be explained. [continue reading…]
The franchising sector has become one of the most prominent in the business industry and is currently at an all-time high. Therefore, there has never been a better time to start a franchise business. The incredible performance of the sector proves that the franchise model has been crafted for success.
Franchising is a very specific business structure that is becoming increasingly popular. It is easiest to think of franchising as a kind of licensing. It allows an individual to run a company of their own, but using another company’s brand name, trademarks and suppliers.