Learning about franchising

The term 'franchising' has been used to describe many different forms of business relationships, including licensing, distributor agreements and agency arrangements. In its most familiar sense, the term ‘franchise’ has arisen from the development of what is called 'business format franchising’. However, the term is widely misused to describe many other business models and opportunities.

Business format franchising is the granting of a license by one person (the franchisor) to another (the franchisee), which entitles the franchisee to trade as their own businesses under the brand of the franchisor, following a proven business model. The franchisee also receives a package, comprising all the elements necessary to establish a previously untrained person in the business and to run it with continual assistance on a predetermined basis (including a predetermined agreement length, with renewal options).

As franchising continues to grow, with the benefit of its robust nature, more and more businesses are considering franchising as a viable expansion model and an increasing number of individuals are viewing it as a good way of starting their own business. Therefore, it is important to ensure that students of business, management and entrepreneurship are provided with objective information on the opportunities and limitations of this expanding industry.

This section helps provide a clear understanding of proper business format franchising, how it works, the advantages and disadvantages as well as providing extra resources to help with student learning.

You will find the following resources here to help you whether you are associated with GCSE, GNVQ, A-Level, undergraduate or post graduate learning:

  • Steve Sleigh
    Mail Boxes Etc - Franchisee case study

    Steve caught a snatch of a radio programme that instantly grabbed his attention. That few minutes on the airwaves were enough to set Steve on the path to self-employment and a complete change in his life.

    Read the full case study View franchise details
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