Franchise Opportunities – more flexible ways to secure business success
Every year, thousands of people looking for business opportunities turn to franchising. Franchised businesses are a secure and flexible way of starting out on the road to success in self employment.
Latest available studies show that more than 900 brands operate as a franchise UK based business. The sector employs over 600,000 people, of which more than 51 per cent are in full time employment which makes franchising a hugely important sector.
What is a Franchise?
A franchise is a contract where one party (the franchisor) grants the right to use its brand and trademark to another party. Along with this come the trade secrets and know how which is taught to the franchisee. The franchisee pays a fee to launch and an ongoing royalty to the franchisor.
Franchising should definitely not be viewed as an easy alternative to setting up your own business which means it is still a risk. The same pressures and challenges exist. It’s just that a Franchisor can teach a Franchisee how to overcome them. A franchisee follows a proven business model with continual assistance, according to an agreed and renewable franchise agreement.
Different kinds of franchise opportunities
There are many different kinds of franchise opportunities available, which operate on differing models:
- Product or Trade Name Franchising: The franchisee holds the right to a name or trademark. this is then licensed to a franchisee who applies it within their own business format.
- Business Format Franchising: This is when the franchisee replicates the franchisors format using the trademark or brand.
Franchising UK wide has seen a 70 percent growth in the sector’s workforce over the last ten years. This has extended franchising opportunities well beyond the well-known global brands and the significant investment they require. Thousands of small to mid-size businesses now offer franchise opportunities. Potential franchise owners can join small to mid sized successful private brands as franchise owners.