Exactly how do franchises work?
- A franchise is a proven business that wants to expand.
- An independent person (franchisee) wants to work with the proven business.
- The proven business agrees to train and support the franchisee to work with them.
- The franchisee pays an initial fee to get set up and a share of the turnover to the franchisor on an ongoing basis.
- All of the above is covered in a legal agreement.
So in essence that’s how it works. There is more detail of course but when people ask us how do franchises work that’s really it broken down into the simplest form. This style of franchising is often referred to as business format franchising. Other types of franchise are available!
Franchise case study.
A company came to us called Absolute Works. They are a HR company based in Kenilworth, Warwickshire. It isn’t easy for them to serve clients 50 miles away so we discussed how franchising could work for them. As a result Lime’s team designed a franchise system for them which allows other HR professionals to clone what Absolute Works does in Kenilworth. Each franchisee can concentrate on their local clients and Absolute Works HQ can provide technical support and HR best practice training. Simples! It’s a win win because now Absolute Works can grow into a bigger brand. Similarly each franchisee has a fast track route into their own business, with mentoring and support along the way.
Follow this link to the best franchises in 2020 and see what else is available.
If you’ve got a business that you might be interested in franchising drop us a line on 01274 662001 or contact your local office here.