What is franchising?
The term 'franchising' has been used to describe many different forms of business relationships, including licensing, distributor and agency arrangements. The more popular use of the term has arisen from the development of what is called 'business format franchising.'
Business format franchising is the granting of a license by one person (the franchisor) to another (the franchisee), which entitles the franchisee to trade under the trade mark/trade name of the franchisor and to make use of an entire 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.
The principle is simple - some companies choose to grow, not by developing in the conventional way, but by granting a license to others to sell their product or service. There are clear advantages to this:
* You don't have to come up with a new idea - someone else has had it and tested it, too!
* Larger, well-established franchise operations will often have national advertising campaigns and a solid trading name
* Good franchisors will offer comprehensive training programmes in sales and indeed all business skills.
* Good franchisors can also help secure funding for your investment as well as e.g. discounted bulk-buy supplies for outlets when you are in operation
* If aware that you are running a franchise, customers will also understand that you will be offering the best possible value for money and service - although you run your 'own show', you are part of a much larger organisation.
- Advice on whether business is suitable for franchising.
- Design of brochure to advertise the franchise offer.
- Advice on franchise revenue and costs.
- Trade marking and establishing franchise brand.
- Financial modelling for franchisors and franchisees.
- Production of franchise operations manual.
- Preparation of franchise agreement.
- Sourcing finance for franchises.
FRANCHISE SET UP ADVISORS
click here for some
of the Finance providers we use
Finance 4 Business Limited co no 06278376
Director Richard Watts CCL number 605125