Franchises are all around us.
From sports to automotive and food, franchising works across a variety of sectors, and can be a great way for driven individuals to change their career or become their own boss.
Of course, franchising does pose its own challenges and there are some questions that you will need to think about before you decide to go forward with your franchising plans. Here are the answers to four commonly asked questions about franchising.
1. What is a ‘franchise’?
A franchise is a business where the business owner (or franchisor) sells the rights to the business name and logo, amongst other components of the business to a separate party. This party is known as the franchisee.
Find out more about the franchisor and franchisee relationship here.
2. How old do I have to be to be a franchisee?
Any age is welcome, as long as you have a passion for business and are keen to make it a success. Traditionally, the industry has had a lot of owners in the 50+ bracket.
In recent years, there has been a strong drive to encourage younger franchisees, particularly those in the ‘millennial’ generation (18-34).
Franchisors are particularly keen for this age group to consider franchising because of their entrepreneurial spirit and the chance to allow their business to continue growing.
3. How can I get some funding?
Franchising can be expensive. Purchasing a franchise can range from £500 up to £1million, which means that the cost can be a major obstacle. If you do not have the funds to pay for the franchise yourself, there are some options that can help you.
Bank loans and start-up grants are just two avenues for you to explore and because franchises have a high level of success, there is a good chance that you will be successful in obtaining at least one of these.
Find out more about financing your franchise here.
4. What about if I just start my own business?
Effectively, this is what you will be doing when you decide to start franchising. It might be more a more expensive method, but the franchise industry has enjoyed a 90% success rate in recent years and many break even within a handful of years.
One major benefit franchising has over starting up your own business is you will have a highly supportive network from an established brand and you will also have more control over the growth in your investment. Franchising is also based on a successful business model and guidelines set out by the franchisor.
Depending on the lifestyle that you want and how you work as an individual, franchising may be more viable and less stressful than starting your own business. Find out more here.
Want to find out more information?
Franchising presents a wealth of opportunities for you to start a new chapter in your career and there are so many industries that you can operate in. To get your franchise dream off the ground, have a look at these opportunities, or get in touch with us to find out more.Tags: business, faq, franchising faqs