Published on 22nd November 2023
Franchising is one of several ways of growing your business. If you’re looking to streamline your operations and scale outwards, franchising is a fantastic choice. It shouldn’t be taken lightly…
Interested in franchising your business? Read our insightful franchisor guides and articles which explain the key elements in franchising your business UK
Published on 13th September 2022
So you’ve listed your franchise profile on Franchise Planet and are manually following up your franchise enquiries. But what if you want to automate these follow ups, or send your…
Franchising is a great way to grow your business. Just as there are many benefits to those looking to buy a franchise, there are equally as many benefits to the franchisor. Growing a business through franchising enables business owners to have better control over the scalability of their brand, by enforcing proper usages and streamlining products and services.
One of the biggest benefits of franchising your business is increased brand awareness. This benefits both you and the franchisees. As your brand awareness grows, so does its reputation and hopefully you’ll gain more customers yourself. You will also benefit from increased capital, and the more franchisees trading, the greater profits you’ll receive from royalty fees. These royalty fees will also enable you to budget for greater marketing, such as TV ads and magazine inclusions. Franchise exhibitions are often out of reach for small franchises and business owners, due to stand costs, and often weary of a lack of return on investment, but with royalty fees etc, you can better allocate funds for improving your franchise network strength.
With self regulation through the British Franchise Association, and a strong network of franchise consultants, banks and lawyers, franchising is very well supported. It is proven too. Generally, franchisees enjoy a 93% commercial success rate compared to solo startup counterparts at 79% profitability. This 14% greater is thanks to the supportive framework that is franchising.
When you franchise your business in the UK, you won’t immediately become a member of the British Franchise Association. You do need to pass a series of checks, including of the franchise operations manual and franchise agreement. These two documents are what define the franchise model’s viability. A document with loopholes and inconsistencies will mean that the business may not truly be a viable franchise model. Because these documents are so important, you should enlist the help of a consultant and lawyer to help with these. No franchise association should ignore these two documents when you become a member. Association membership helps your franchise get off the ground and establish credibility.
When you franchise your business, you’ll be offering franchisees a “business in a box”. This will include access to your brand, and it should also include some form of training and support for the franchisee. This might be on the job training with another franchisee along with some training from you in regards to running the business. It’s important to remember that many people look to franchising as their first step to business ownership – ie never owned a business before. Because of the greater success rate and an ideal entry point into entrepreneurship, your training should cover as many elements as possible.
Other items you may want to include (and account for when determining the franchise investment figure), such as marketing leaflets, uniforms, support finding a vehicle (if van based), insurance or certification, etc.
Franchise Planet is run by a team of franchise consultants who are eager to help those looking to get into franchising. In the same manner, we would be delighted to point you in the direction of other consultancy businesses that are either closer to you or more relevant to the sectors that you accommodate. Most franchise consultants are eager to spend the time understanding your business and so some consultants will already have knowledge and experience in your area. They’ll be able to assist with lead generation and getting your first franchisees off the ground. Take a look at our franchisor guides above or get in touch with our team today.