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What is franchising?
Franchising is a method of distributing products or services. At least two levels of people are involved in the franchise system: (1) the franchisor, who lends his trademark or trade name and a business system; and (2) the franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor's name and system. Technically, the contract binding the two parties is the "franchise," but that term is often used to mean the actual business that the franchisee operates.
How big is franchising?
The UK franchise industry annual turnover is currently worth £10.3 billion and in ten years has grown 75% from £5.9 billion. There are now 759 active systems in the UK.*
What are some of the advantages of franchise ownership?
- Established operating systems
- Nationally known brand name
- Complete training programs
- Thorough and ongoing business support
- Protected territories
- Research and development of products and services
- Network of peer owners
- National marketing initiatives
- National buying power
Franchising allows you to be in business for yourself, but not by yourself. You can avoid many of the pitfalls of new business ownership if you follow the proven systems of a franchise concept.
*UK British Franchise Association Annual Survey of Franchising 2006, conducted on behalf of the British Franchise Association and sponsored by NatWest.
For more information please click here for the British Franchise Association (BFA) as the only independent accreditation body for franchising within the UK.
For all prospective franchisees we also recommend you take independent, professional advice from a fully qualified Accountant and Solicitor.
Click here to request more information |
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