UK Business Franchise Opportunities Franchises
UK business franchise opportunities are basically an arrangement that involves the selling of rights to use the business name and sell a product or service in a given area. Franchising is a business method where licenses trademark or methods are given to the single party or group for a recurring royalty fee. The agreement also includes training and marketing campaigns.
A business franchise offers businesses the advantage of gaining profits quickly using the proven trademark and formula of doing business compared to having to set up a new business or brand from ground up which often leads to aggressive competition from other similar business type.
Franchisors have the advantage of expanding their brand rapidly with enormous profits provided their brand and formula are carefully designed and executed properly without straying too far from their original business formula. Franchisors are able to build a captive network without a large investment.
Consumers on the other hand prefers franchises as opposed to a single brand name, franchises offer consistencies in product and services and thus consumers knows exactly what to expect and have the confidence in their investment.
Companies like Coca-Cola were the first company to introduce franchising into their products. They started by franchising their bottling and manufacturing areas to reduce financial risks. One of the biggest and most successful franchise today is McDonalds who took franchising to a new level by expanding their business through marketing and brand recognition.
Starting a franchise is similar to cloning a successful business in your own territory. The only difference is how you manage the opportunity in the location in which you decide to run the business.
Owning a franchise has a few important advantages compared to opening up your own business. Below are a few examples that are provided with your franchise license.
* Training - Almost all franchises provide training to run the business efficiently. Seeing you succeed in your franchise is a direct profit to them at the end of the day.
* Brand Awareness - Consumers typically will buy products from familiar brand names and invest in services from a company they know and trust. Brand awareness can either make or break a business and it takes years for a business to successfully build a respectable brand. Brand name is ultimately the key that helps drive sales and gives a business the edge over competitors.
* Procurement & Logistics - Franchise companies are able to purchase their goods and supplies at reduced rates due to purchases in bulk from companies or contracted supplier that are already in contract with the franchise. This gives franchises huge savings that is passed back to each franchise unit and a competitive edge in the market.
* Advertising & Marketing - Almost all franchise companies provide support for advertising and promotion budgets to drive sales.
Nobody wants to ever miss the chance of owning a business. You may even be one of those people who are thinking about owning one. Well, if such, it would always be possible that you have already considered a franchise business opportunity. Well, with any field, starting a business is definitely a life and professional decision. As with any major decisions, it is essential for you to weigh down all of the benefits and drawbacks of buying a new business franchise opportunity.
The Benefits of UK Business Franchise Opportunities
The first benefit that you could take for buying a UK franchise business is that, you could get the probability of success. With the established support system, the franchisees are able to avoid the pitfalls leading up with the failure of small independent businesses around.
Another benefit is the recognition of the brand. Customers are becoming familiar with the franchise brand and then learn to trust the brand. This will surely increase the business for the franchise owners in despite of their location.
There would also be the availability of support and training. The franchisors are offering some sort of training programs for the new franchise owners before the grand opening. Whenever the new business of the franchisee is up and operating, the franchisors will then provide an ongoing support in the form of meetings, networking, research and development, additional training programs and so on.
Just like any other thing, you could also experience some drawbacks. You have to consider these cons prior to making the decision of buying a UK franchise. Although franchising could reduce the risks of business ownership, it does not really get rid of it together. Just like any other business, the success of the franchise always depends upon the determination and effort of the franchise owners.
While the brand recognition is listed right under the benefits, it also has the potential for being a disadvantage in terms of franchising. Just as the consumers learn to trust the brand based upon the positive experiences, one of the negative experiences could surely turn the buyer off to your franchise, though your branch was not really involved in negative scenario.
Another disadvantage is that, you will be lacking of independence. Keep in mind that operating within the system of a new franchise business opportunity could also impose limitations on the businessperson. You aren’t free to pursue any sort of creative ideas, since there are already rules and regulations made by the company owner.