Although franchising is worth more than £15 billion to the UK economy, many individuals have no idea what a franchise is or what kind of companies are run as franchises. So, what exactly is a franchise, and what kinds of franchises can someone operate?
There are various types of franchising, including utilizing it to distribute movies, music, and video games, but for the sake of this essay, we’ll concentrate on business model franchising. When franchise documents, agreements, and training mimic an existing operating and successful firm, this is known as business format franchising. The following are only a few of the numerous paperwork required to franchise a business:
- Owner of a franchise (the business owner) a business strategy
- Owner of a franchise (the person running the local franchise) a business strategy
- Franchise agreement – an agreement between both parties on how they will function and how much will be paid to the franchisor, and what each party’s responsibilities are.
- Franchise prospectus — The franchisor’s sales and marketing document for attracting franchisees.
- Operating handbook: A document that details how a franchisee will create/start their firm and all day-to-day operations.
- The franchisor uses a training handbook to ensure that each franchisee understands the responsibilities outlined in the operating manual.
What kind of businesses may be franchised?
So, what kind of enterprises may be franchised? If the business operating technique can be transferred, any company may be copied using a business format franchise. The new local market is the same as the old local market.
- Automobile – firms that provide alloy wheel and smart repair services and scratch and dent removal franchisees- are instances of this.
- Franchises that operate from the comfort of your own home — This might include B2B sales, banking, consulting, or online services, and it’s a rapidly increasing field with many individuals looking for a better work-life balance.
- Many areas are covered, including hotel and hospitality, domestic care, and nursing personnel.
- Franchises in the food and catering industry: Everyone thinks of fast food and burgers, but there are a variety of food franchises available, including corporate catering franchises, pizza franchises, Chinese and Indian cuisine franchises, and a variety of low-cost mobile catering businesses.
- Hotel: Some of the world’s most well-known hotel companies franchise and have done so for decades to expand their brands without owning properties.
- Business guidance and consultancy: These franchisees provide everything from cost-cutting to accounting and business coaching.
Hopefully, now you can understand how important franchising is to the UK economy, especially in assisting new small company start-ups and offering useful services to your community.
This article was provided by Joel Bissett of Franchise UK.