What is Franchising?
Franchising is a time-tested business model that enables individuals to establish and manage their own businesses with the backing of an established brand and business framework. As franchising consultants, our job is to lead business owners through the franchising process and help them create a thriving franchise system that supports business growth both nationally and globally.
The franchising model is a partnership between two parties: the franchisor, which is the established company that provides the franchisee with the brand, products or services, and business systems, and the franchisee, who pays an initial fee and ongoing royalties to the franchisor in exchange for the right to use the franchisor's brand and business systems.
Styles of Franchising
There are two types of franchising: product distribution franchising, which involves selling products or services to the franchisee for resale, and business format franchising, which includes the licensing of an entire business system, including trademark, operational systems, training, and support.
In business format franchising, the franchisor offers the franchisee everything they need to run a profitable business, including a proven business model, training, marketing support, and ongoing guidance, while the franchisee is responsible for implementing the business system and operating the business according to the franchisor's standards.
How We Can Help
As a franchise consultant, we understand that franchising can be an effective way to expand your business and reach new customers.
We can assist you in assessing whether your business is franchisable, creating a comprehensive franchise business plan, registering your trademarks and intellectual property, developing a screening process to choose the right franchisees, and designing a marketing strategy to attract suitable candidates.
We can also help you establish a support program to assist your franchisees in achieving their goals.
The History of Franchising
The history of franchising in the UK dates back to the early 20th century, when American companies began to expand into Europe.
The Singer Sewing Machine Company was the first franchise to operate in the UK, launching its retail stores in 1905. In the 1970s, franchising took off in the UK, with the arrival of many American companies, including McDonald's, which opened its first UK restaurant in 1974.
Today, franchising is a significant part of the UK economy, with an estimated 48,600 franchised units generating £17.2 billion in sales in 2018, and over 900 franchisors operating in the UK in diverse sectors.
Franchising has proven to be a popular option for entrepreneurs seeking to start their own businesses with reduced risks and for companies seeking to expand quickly and efficiently by tapping into local knowledge and expertise.