Franchise your business
Franchising is a tried and tested business growth strategy that has enabled many entrepreneurs to build wide-scale business networks. Learn how The Franchise Company can help your business expand.
Why Franchise your Business?
Franchising represents a huge and growing sector in the UK economy worth over £16 billion. There are over 900 franchise opportunities available in the UK alone, employing over 600,000 people. A proven franchise massively reduces the risk of business failure with less than 3% of franchisees failing and over 90% profitable.
Franchisees of good franchise systems also receive extensive support from the banks who all have specialist franchise units designed to provide finance to franchisees.
(Source: Nat West/British Franchise Association survey).
The Benefits of Franchising
Franchising is a tried and tested business growth strategy that has enabled many entrepreneurs to build wide-scale business networks. There are many benefits to franchising, including:
- The business can expand with less capital (and therefore more quickly) than with the traditional route of company-owned expansion, since the start-up costs of opening in each new area are met by the franchisees.
- Franchised units generally perform better than company-owned units, due to committed franchisees.
- Franchise units that are are less troublesome to manage, due to the vested interest of the franchisee.
- Franchisors can exercise a higher degree of control through the Franchise Agreement.
- The day-to-day running of the individual franchise units is the responsibility of the franchisees.
- The resources needed to build and support a franchise operation are generally less than a company-managed network.
The Franchise Development Process
The chart below illustrates the normal process that a business will go through when developing a franchise model. Our service list above covers all of the work required to support a business through this development process:
The Stages of Franchise Development
- Develop the business model and prove overall viability in one or more areas
Design the Franchise Model
- Design the franchise model
- Confirm feasibility
- Produce franchisee and franchisor financial models
- Fee Structures
- Territory Analysis
- Franchise Prospectus
- Operations Manual
- Franchise Agreement
- Franchise marketing strategy and materials
- Franchise recruitment, training and support systems
Pilot the Franchise
- Pilot the franchise model in 1-3 areas
- On-going monitoring and review
- Feedback loop to improve systems
- Accelerate Rollout
- Provide on-going support to existing franchisees
- Ongoing development and innovation
If you’ve got a business that you’re thinking about franchising then simply get in touch for an initial discussion. Once we know a bit more about you and your business we can give you some initial guidance and advice about how to proceed. We look forward to hearing from you.