What is Franchising?
Franchising has been a successful business model for decades, enabling entrepreneurs to start and run their own businesses with the support of an established brand and business system. Franchise consultants play a vital role in guiding business owners through the franchising process and helping them create a successful franchise system that allows for business expansion in the UK and internationally.
The franchising model involves two key parties: the franchisor and the franchisee. The franchisor is the established company that provides the franchisee with the brand, products or services, and business systems. In exchange, the franchisee pays an initial fee and ongoing royalty payments to the franchisor.
Styles of Franchising
There are two types of franchising: product distribution franchising and business format franchising. Product distribution franchising involves the sale of products or services to the franchisee, who then resells them to the consumer. Business format franchising, on the other hand, involves the licensing of an entire business system, including the trademark, operational systems, training, and support.
How We Can Help
As a franchise consultant, our role is to help business owners assess whether their business is suitable for franchising. Once that's established, we can work together to create a comprehensive franchise business plan that covers all aspects of the franchising strategy, including target market, franchise fees, royalties, and ongoing support.
Protecting the brand is critical, we guide businesses through the process of registering their trademarks and intellectual property with the relevant authorities. We can also help prepare a robust operations manual that outlines the franchise system and procedures in a clear and concise manner.
Choosing the right franchisees is crucial to the success of the franchise system, and we help develop a screening process that ensures the partnership with individuals or businesses with the necessary skills, experience, and financial resources to succeed.
Marketing the franchise system to potential franchisees is essential to attracting the right candidates. As a consultant, we can help develop a marketing strategy that includes using a range of channels to reach the target audience, including social media, online advertising, and trade shows.
Providing ongoing support to franchisees is key to their success, and we can help develop a comprehensive support program that includes regular training, marketing support, and operational guidance.
The History of Franchising
Franchising has a long history in the UK, with American companies beginning to expand into Europe in the early 20th century. The first franchise to operate in the UK was the Singer Sewing Machine Company, which began franchising its retail stores in 1905. McDonald's opened its first UK restaurant in 1974 and now has over 1,300 restaurants in the UK. Franchising continued to grow in popularity in the 1980s and 1990s, with many UK companies adopting the model as a way to expand their businesses.
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. There are over 900 franchisors operating in the UK, covering a wide range of industries, from food and beverage to healthcare and fitness.