Email to a FriendFranchising is a low-risk way to start a business and become self-employed. Sounds great, doesn’t it?
However, there are lots of misconceptions about franchising and what it really means. So, we’re here to explain it all and give you the low-down on owning a franchise.
What Is Franchising?
A Franchise is…
A franchise is a process of distributing products or services involving a franchisor, who establishes the brand’s trademark or trade name and a business system.
Basically, a brand allows people to operate using their brand name whilst operating as an individual business.
A Franchisee is…
A franchisee pays a royalty (and an initial fee) for the right to do business under the franchisor's name and system. For example, the franchisee could open a new restaurant using the franchisor's name and branding.
An example of a franchising business is the Women In Business Network. There are multiple WIBN groups spread all around the UK that all operate under the Women In Business Network brand.
Each WIBN group is owned by a franchisee that owns a number of groups and operates them as their own business.
Many other high street brands also operate as franchises. For example, high-street favourites Subway, Costa Coffee and Mcdonald's are all franchise businesses.
The Benefits Of Franchising
If you want to move into the world of self-employment and running your own business then a franchise is a smart move.
The biggest positive about owning and running a franchise business is the existing infrastructure and support that is in place.
Branding & Visibility
One of the biggest challenges when starting a new business is visibility and brand awareness. Customers don’t know who you are, what you do or if they can trust your brand.
That’s not the case with franchising with an established brand. Aspects such as a strong logo, branding and company message are all taken care of. Customer familiarity with the brand and visibility are also already in place and you can sell your services based on an existing strong reputation.
Running Your Business
Starting a new business can be an overwhelming process. Accounts, people management, advertising, operations - the list goes on. However, when you own a franchise many of these things are already in place.
For example; when a new franchisee joins WIBN they are supported from the very start.
You receive coaching and training on running a small business and how to operate networking groups.
A Great Team
Working for yourself, especially if you’re used to working as part of a large team can be a little isolating.
Not, so with franchising. As well as receiving support from head office, you also become part of an inclusive team of franchisees who continuously offer support to each other and share ideas.
The Best Of Both Worlds
Franchising combines the autonomy and freedom of running your own business with the support of a team.
Take control of your career by building your open path and making choices that really benefit you. It’s so easy to get stuck in a rut when you work for someone else and the opportunities don’t always appear.
Deciding your own working hours and holidays is by far the biggest reason that most people become self-employed. No more missed parents’ evenings or denied holiday requests. You can prioritise the things that are important to you.
You also receive all of the benefits of your hard work. You can build your business and improve your quality of life.