Why Franchise?

Some of the best-known brands in the UK use a franchise model as their means of expansion – with great success.

Therefore, if your business is proven, profitable, and transferrable across different geographic areas and teachable to an outsider, you really should consider franchising if you want to expand.

These are some of the advantages of franchising.

More Cost-Effective Growth

  • Your brand benefits from the capital investment and resources of others – i.e. your franchisees – so you require less capital than taking on more stores/outlets and more staff yourself

  • Fees are paid by franchisees to join your network – to cover the cost of training them and establishing them in your systems; and then on an ongoing, monthly basis

Better Results per Outlet

  • A network of owner-operators gives you a more robust business compared to simply installing managers.

  • Franchisees are far more motivated and have a significant vested interest – i.e. financial, time and emotional – in the success of their business

  • Consequently, your brand grows through a network of ambassadors with as much interest in you as making it the best it can be

Some of the UK’s biggest brands have reported a 30% upturn in store revenue when a company-owned outlet is converted to a franchised outlet.

Easier Management

  • A franchise network requires sufficient staff to support and oversee it – but significantly less than a similarly-sized company-owned operation would require to operate at the same level

  • Franchisees assume all responsibilities for individual outlet staff recruitment and training, accounts etc

Strength in Numbers

Many franchisors – principally when they are starting out – encourage their franchisees to contribute ideas for the future success of the brand. You’re all working towards the same goals, and the synergy in the relationship can be incredibly powerful.

  • Often, the views and experiences of others coming into your network create new routes to success

Sometimes, being a business owner can be isolating. Franchisees form strong links across the network and will often consult with one another, seek advice from more experienced franchisees or use their colleagues as a sounding board for best practice and for new ideas.

  • This inspires a philosophy of continuous improvement leading to growth and increased profits for all concerned

Knowing there are others around to call on, as well as a Head Office Support Team, is reassuring.

  • Therefore, it will come as no surprise that the bfa’s national franchise conferences are extremely well attended by most networks because they lead to a wealth of knowledge-sharing across the business

Franchising also requires significant financial investment and time at the outset to get the model set up correctly for future growth.

  • Franchising is a model used to replicate a successful and proven business, using the investment and skills of new individual business owners, who will be trained and supported to run the business under the agreement, conditions and format, as proven and agreed between both parties

Key Steps to Franchise your Business

The information we provide in this section is aimed at anyone who operates an existing business which could use the franchise method to grow or to become more competitive.

We recommend that you click on our list of bfa Affiliate Members for resources which may be able to assist you.

We also recommend attending one of the bfa's Franchisor Seminars. These offer a very time- and cost-effective means of gaining wide-ranging insights to franchising from experienced franchisors and experts.

 

Transforming the future of business through franchising

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