There is no doubt about it, franchise business opportunities are booming in the UK.
Not so long ago though, if somebody had wanted to commence their own business, home based, part time or otherwise, they would have had to go it alone, for the most part relying on their own initiative, limited business acumen and having at least some knowledge of the market. However, with the arrival of relatively straightforward start-up and low cost franchising opportunities for sale, a massive change has occurred in business.
Franchising has brought about creation of wealth for many franchise owners but it has many other benefits additionally.
You are the owner of the new business.
Although the franchise is a part of a profitable business model, the franchisee is the owner of the enterprise. They will undertake the administration of the daily processes and procedures, and the hiring and firing of employees. Since the owner has invested money into the company, they will have great interest in it as they can lose or gain a great deal.
Already established marketplace.
The buyer of the franchise will be purchasing a thriving, ready-made business that is proven to be successful. As a franchisee, the company will have authorisation to sell and market the franchiser’s products or services by using their brand name, logos and trademarks etc. Customers and consumers will be already acquainted with the products of the franchise and the franchisee will therefore, have a ready-made market.
Ongoing franchiser backing and assistance.
If at any time the franchisee runs into any problems or merely needs support, they can call on the franchiser whenever they need to. In fact, you will find that many top franchise companies have employees that can be sent out on site to the franchisee and oversee any issues of concern that may arise within the business.
Many top 10 UK franchises today are complete products or services that are ready for immediate use. What this means is that as soon as the franchise contract has been signed and fees payed, the franchisee will receive all of the gear and provisions that are necessary to operate and manage the franchise.
The franchiser will offer assistance to the new business in determining appropriate premises for the outlet. Additionally, they will help the franchisee in designing, fitting out, decorating and equipping the store, broadband for internet franchises, as well as helping to negotiate lease details. This kind of assistance in setting up a new franchise outlet takes away much of the stress and anxiety that occurs when someone is trying to set up a business on their own.
Reduced capital expenditure.
Since the franchiser has already been through the setting up and management of the company, it is a proven low cost system that has been tested and any unnecessary expenditure will already have been isolated and eliminated. There will be no need for trial and error and issues that crop up, leading to needless funds being spent when setting up a solo business.
Reduced risk to business.
As with reduced capital expenditure and the franchise being a proven business idea, the potential risks are mostly lessened also. The franchise has been through all of the potential problems and has overcome them and will have measures and systems in place to prevent those problems from recurring.
Obtaining reduced cost supplies.
The franchiser will negotiate the cost of goods with suppliers and usually get the goods at a reduced price. Because the franchisor purchases large quantities of supplies, and they purchase on a regular basis, they are given big discounts by the suppliers. These reduced price goods are then passed on to franchisee outlets. This reduction in price means that the franchisee is able to sell the goods also at a reduced price which means that they have a distinct advantage over retail outlets that can’t offer these price reductions.
The franchiser will provide all of the necessary training for the franchisee in order that they can manage the business satisfactorily. All of the employees, as well as the new business owner, will be taught everything from product and service provision, management, quality criteria, hiring and firing and promotion and publicity. The franchisee and staff should expect to receive ongoing training to keep up with standards, ideas and trends etc.
Piggybacking off the franchise reputation
Owners of shopping centres have a preference for popular franchises to be part of the complex because customers enjoy the fact that everything is close and they can purchase brand names in one location. This is great news for the franchisee as they can typically acquire a lease within the shopping centre without much of a problem.
Established quality controls.
Franchisee businesses are expected to adhere to certain standards and quality controls, particularly when concerning customer services, product and service quality. Customers will expect the same standards regardless of where they are situated in the country, and possibly the world. The franchiser will want all franchisees to provide and meet all of their quality standards.
Intensive marketing promotions.
At times, there will be concentrated marketing campaigns made by the franchise. The costs of these promotions are usually shared by everyone involved with the franchise. Although the costs can be quite a pull on resources for the franchisee, the benefits are that the franchise as a whole will have a huge marketing budget to play with. At the end of the day, both franchiser and franchisee are the winners because the large budget can buy the best marketing agencies that are available. Having great real estate in prime locations, along with top marketing strategies, make it extremely difficult for competitors to contend with.
Ongoing research and improvement plans
The franchiser will have ongoing research and improvement plans in order to create new products for customers to enjoy and also update and ideas to improve current products in their catalogue. Products and markets can transform very quickly and the savvy franchise will need to at least keep up, and preferably lead the market. There is so much competition out there and any business that rests on its laurels will at best remain static and at worst fall behind.
The franchising world is not only beneficial to the franchisee, the franchiser will gain benefit also. They can expand their brand to many areas very quickly, and without spending too much in doing so. The franchisee will pay a fairly large fee up front to acquire the licence, and also pay royalty fees as a continual basis. Franchiser stores can be managed by a franchisee and by doing that, the franchiser can spend more time in expanding the business and developing the brand even further.
Franchising resales is the fastest way to grow a business and increase profits to their maximum. There are very few hurdles to expansion because systems are already in place. Because expansion is so quick and prices very aggressive, competition will usually find that they cannot compete and will be forced out from the area. These franchiser benefits also benefit the franchisee due to piggybacking off the brand name and the success of the parent business. No other business model can present such an appealing and mutually advantageous understanding.