Learn What Franchising Is

Learn What Franchising IsFor people who have money to invest into a business but do not necessarily want to develop an idea from scratch, investing into an established business model is an attractive option. And with over 1,400 franchises to choose from in the UK alone, there’s probably something to suit everybody.

If you want to start a franchise, there will be an up-front fee which can range from a few thousand pounds to hundreds of thousands of pounds depending on the type of business and the vehicle or premises needed from which to trade, along with numerous other factors which will have been taken into consideration.

The franchisor will, in turn, provide all the materials and information needed to run the local area business as well as initial and subsequent training and support to help the business succeed. This makes perfect sense for the Franchisor and Franchisee alike as there is a real sense of inter-dependency by both parties. Franchisees become a part of an established brand, and there are often strict operational rules put in place for franchisees to maintain brand uniformity. Really good examples of this are in the Fast Food sector. Even though each franchised restaurant is owned and operated by a local area business owner, they all have the same feel, and the food, for the most part, looks and tastes the same no matter where you may be globally.

To maintain energy, commitment and brand uniformity, Franchise Agreements are signed by both parties and will typically have a stipulated time during which a franchisee agrees to operate the franchise. This usually ranges from a few years to several decades. Franchise Agreements are legally binding documents, on both parties, and are therefore adhered to in everybody’s best interests!