Whether you know a little or a lot, franchising can seem complex at times. This guide provides an overview of the ins and outs of the industry, as well as information on how you can start the process to buy your own franchise.
So, what is a franchise?
At its simplest, franchising is a way for businesses to grow into new areas by selling the use of their brand to people who want to run their own business.
The ‘franchisor’ (brand owner) provides training and support to a ‘franchisee’ (brand buyer) to help get them set up in the new territory.
Franchises are everywhere. You may be surprised to find that a lot of shops and services that you use are franchises.
They can range from fast food outlets, to cleaning and gardening services, to business consultants, and even to children’s party event organisers.
The appeal of franchising
OK, so we’ve got an idea of what a franchise is, but why would anyone be interested in owning one?
- Being your own boss – Being in charge of a business gives you more control of your career and your work-life balance.
- Training and support – All franchisees receive initial training and ongoing support from the franchisors.
- Success rate – 9 in 10 franchises report profitability, compared to 1 in 2 new independent businesses that go bust within the first two years.
Franchising is a great risk-averse way to be more in charge of your life, with a support network behind you.
Of course, there are risks that any business faces, so the next question we need to answer is, ‘is franchising right for me?‘