Understanding the franchise industry

Franchising is often referred to as an industry in its own right. This is largely due to its scale and the common use of ‘business format franchising’ as a growth model by the businesses within. However, franchising spans many industries, from home-run domestic services to world renowned high street brands. Franchising is a business model used in the ‘business to business’ (B2B) and ‘business to consumer’ (B2C) fields, with both blue and white collar successes.

Time and again, franchising has greatly outperformed other start-up businesses. Its formula of a locally owned and run enterprise, driven by a small business owner, with branding, economies of scale and support from the wider network, gives the consumer the best of both worlds and the business a far better chance of success.

This robust business model, fuelled by dedicated individuals, encompassing many different skills and backgrounds, opens up countless opportunities for people looking for a new start. That is not to say that franchising offers an ‘easy route’, becoming a franchisee is a serious business option and one that requires hard work, lots of enthusiasm, dedication and business acumen.

The formation of the British Franchise Association (bfa) in 1977 marked a significant leap forward in the industry, its approach and responsibility to provide a professional, ethical and subsequently very successful industry. Set up to accredit and promote excellence in franchising, the bfa accredits franchisors based on a code of business practice and the European Code of Ethics for Franchising. As a result, franchising now encompasses a multitude of business types and consumer markets and has established itself as a respected and highly regarded business model. The British Franchise Association’s list of accredited members demonstrates the scope of business types in franchising.