The future is franchising
Franchising is a success story that's not often heard, so the British Franchise Association is showcasing what the sector has to offer UK entrepreneurs
Franchising is one of the real success stories of the UK business landscape. It has become a genuine and highly effective option for rapid, cost effective growth – and it’s contributed more than £15bn each year to UK plc in the process.
But franchise businesses are all too often a hidden engine of the UK economy, so it is essential to champion the contribution both large and small enterprises make. We need to support our franchisees and showcase what franchising truly offers UK entrepreneurs.
These talented people are looking for trusted and proven businesses to invest in. Today, budding entrepreneurs from every walk of life have never had a wider selection of franchises to choose from, covering everything from the traditional home of the sector in the fast food industry, through van sales and gyms, to innovative lifestyle franchises in the pet and home tutoring sectors.
Understanding the basics
For those of you new to franchising, it’s a great way to get into business ‘for’ yourself but not ‘by’ yourself; to be successful and become your own boss, even if you haven’t got a strong business idea.
Franchising itself is a simple relationship between two parties – the franchisor who owns the brand and business system, and the franchisee who contracts to run a copy of that business in a local area. The franchisee will pay an initial fee for the right to access the brand and business system and then ongoing management and marketing fees, ordinarily as a percentage of their turnover, for the support they receive.
Investors can therefore still set up a ‘local business’ but they have the back-up and support of a larger organisation and a network of other likeminded people behind them.
Showcasing the industry
At the British Franchise Association it’s our mission to drive standards in, and the strength of, the sector. And we’ve recently collaborated with ITN Productions for a programme, ‘The Future is Franchising’, designed to educate both the public and media about it.
We are thrilled with the results, with so many high-profile businesses drawn from across the length and breadth of the industry contributing to the show. Together with our members we feel we have created an informative snapshot of franchising, covering a huge range of industry topics, from the basics to the growth of specific trends.
With many misconceptions and many commentators still showing little understanding of how franchising works, this programme brings to life why it’s such a success story.
For example, effective franchising needs the franchisor to provide good support systems and specialist training and ‘The Future of Franchising’ showcases how this helps businesses maintain a failure rate of less than 5 per cent after five years, compared to the small business rate which is closer to 60 per cent.
The programme also looks at how franchising offers the opportunity for entrepreneurs to establish and expand a business on a small scale, as well as the huge number of rewarding careers available.
Click on the link to the full Future is Franchising show, to see how some of the main players in the industry do it and learn even more about the sector. We hope you all find it both an enjoyable and useful introduction to the sector.
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