What is a franchise?
Business format franchising in a nutshell is the documenting and replication of a proven business formula. In order to franchise a business it must not only be successful but have a good trading history under its belt.
The method by which the business succeeds will be written down in an operations manual and trade marks will be registered to protect the brand. This is the franchise system’s know-how or intellectual property. This becomes the determining formula as to how a market can be exploited and forms a business that is valuable for those who follow it energetically. Typically is it the difference between running a McDonald’s restaurant or a Joe’s burger joint. The brand of the franchise should have good public awareness, tried and tested support and systems in place, and consequently be more likely to succeed than a conventional business.
The franchising industry now brings over £10 billion into the UK economy and this has increased by double over the last 10 years. Indeed, the only conclusive franchise sector survey conducted annually by the BFA & NatWest Bank, show a dependable figure of around 90% of owners who are running franchised business on a self-employed basis remaining successful year after year.
Curious to find out more about franchising? Check the British Franchise Association website or browse one of the many franchise directories that can be found on the web or relevant franchise publications.