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.
Franchising your business is the process of expanding your business as part of a franchise model. In a franchised business, the business owner (the franchisor) grants their franchisees permission to use their established brand, and work under it to run their own branch of the business. Franchisees will then pay the franchisor to use their brand and run their franchise unit largely independently. Franchisors offer support, branding, marketing and operations guidance to franchisees, who then oversee the day-to-day running of the business.
Franchising can be an incredibly profitable form of growth, as it doesn’t require the same level of capital as company-owned expansion, and so can be a much quicker process.
With over 25 years of experience helping organisations move into a franchise model, we are the best choice for a business looking to grow and expand their operations through franchising. Read on to learn how The Franchise Company can help your business expand.Why Franchise your Business?
How To Franchise Your Business
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.
Franchising your business allows you to grow your business more quickly than with traditional, company-owned expansion, and is also significantly cheaper than company-owned expansion. Franchising your business allows you to have independence from the day to day running of your business, and focus on the bigger picture, while supporting and collaborating with your network of franchisees to create a successful and valuable business.
By creating a network of trusted franchisees, you can also feel confident that your business is supported by motivated, invested individuals who are passionate enough about your company to invest in, and work as part of it every day. A strong, motivated network of franchisees can also offer ideas and opportunities for growth and success, as well as creating a supportive community that builds a strong sense of brand loyalty.
Franchising your business is an opportunity to expand your business and create a profitable company across a network of motivated franchisees. Using a franchise model, your business can expand and have great success within a model with fantastic potential for profit and growth.
(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.