There are a range of franchises for sale in the UK varying from style of business to the entry fees that are payable. Not to mention of course, there are ongoing fees once the business is established and up and running. Normally these fees or royalties would be paid monthly from profits from the business.
The initial payment for new franchises is for the use of the company name or brand and logos. The franchisor is being paid for their expertise and experience in the industry. The franchisor has already perfected the methodology of running this business to its optimal performance.
The franchisor will have a manual or guidebook laid out ready with a step by step approach to implementing their procedures. They will be on hand to help find the right location or premises. They will advise the best way of running the business on a day to day basis, and a process for administration, ordering stock, and payment policies. They will help to train the team and get the best out of them. A franchise is so successful because everything is uniform. A customer can walk into a fast food outlet in one town and know what to expect in the same franchise in another town. That customer will recognise the logo, the staff and their menu choices.
That is why they have picked the same store, because they are already familiar and satisfied customers. So you can imagine their dismay if they turned up and the layout was different, the menu was different, the prices were over the odds. That is why the top franchises stick to the guidelines laid down by the franchisor.
Not only is there already an existing customer base, the brand name can be nationally recognised and hence often have more advertising power for less cost. Speaking of costs, if we are looking here at one of the bigger franchises, then banks are often more likely to lend money to a franchise than a stand-alone start up business. It is not only the original fees that need to be covered by the new franchisee, the cost of living during start-up must be considered, until the franchise is up and running and creating an income.
Part Time Franchise
The beauty of perhaps starting out with a part time franchise is that the business can become full time as the business grows and the income grows, and the franchisee becomes more confident with their decision to move out of the rat race and into the franchise industry. Statistics show that one third of franchisee owned businesses employ ten or more staff… goes to show there is room for growth!
So we talked about a fast food outlet above, but that is not everyone’s cup of tea. There are parents who stay at home with their franchise business. Part timers looking for online web based franchises. There is anything from low cost franchises from 1000 to 15,000 pounds investment level to more than 75,000 franchise investment. There is a franchise out there for any skillset, and the franchisor will help to get that business off the ground.
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