Every year, thousands of people looking for business opportunities turn to franchising as a secure and flexible way of starting out on the road to personal growth and achieving financial success.
Latest available studies show that more than 900 brands operate as a franchise UK based business, employing more than 621,000 people, of which more than 51 per cent are in full time employment (British Franchise Association (BFA) Report, 2016).
What is a Franchise?
A franchise may be best defined as an arrangement where one party (the franchiser) grants another party (the franchisee) the right to use its trademark or trade-name, including specific business systems and processes. The aim is to produce and market products or services strictly determined by the stipulations and guidelines of the franchiser.
It is important to understand what the franchise definition really means for anyone considering this route to running a business. Franchising should definitely not be viewed as an easy alternative to setting up and running your own business. A franchisee would be required to follow the proven franchise business model. This provides all the necessary components, which will enable a previously untrained person in the business to run the franchise with continual assistance, according to an agreed – and renewable – contract length.
Different kinds of franchise opportunities
There are many different kinds of franchise opportunities available, which operate on either one of two business models:
- Product or Trade Name Franchising: Where the owner holds the right to a name or trademark, which is then sold or licensed to franchisees.
- Business Format Franchising: Where the franchisor and franchisee have an ongoing relationship in which the franchisor provides services, such as choice of business site, training, marketing plans, and other business tools.
Franchising UK wide has seen a 70 per cent growth in the sector’s workforce over the last ten years, which has extended franchising opportunities well beyond the well-known global brands and the significant investment they would require. Today’s opportunities in franchising are increasingly found in thousands of small to mid-size business offering a huge variety of services serving people at home, at work or on the move.