TotalFranchise Franchise Business Opportunities and UK Franchises For Sale
The basics for beginners
Here we talk about the basics of franchising to assist those of you who wish to consider becoming a franchise owner. We explore the different types of franchises and the advantages of becoming a franchise owner.
Featured Franchise
Leading Franchises

Franchising - The basics for beginners

Franchising: A Definition

The Basics of Franchising | Franchising for Beginners

The Oxford Dictionary's definition of a franchise is:

“An authorisation granted by a government or company to an individual or group enabling them to carry out specified commercial activities, for example acting as an agent for a company’s products”.

Beyond this however and more generally it can be considered as somewhat of a hybrid that mixes the best of large businesses with small businesses so that they can mutually benefit from one another.

For the franchisor it provides capital to expand, an untapped talent pool and minimalised growth risks; and for the franchisee it provides an instantly recognised brand to work with, support and a somewhat prebuilt business.

For the potential franchisee

If you are considering becoming a franchisee then there two main forms of franchise, with these being a product distribution franchise and a business format franchise.

Product Distribution franchises:

This form of franchise would involve you selling the franchise’s products onto your own clients within a territory for a profit.

It’s pretty comparable to any supplier/dealer arrangement, although you benefit from support in growing the business as your own.

Business Format Franchises:

This form of franchise is altogether more comprehensive in that there are methods that are provided for operating the business on a day to day basis.

Further to these two main franchise forms, are three main formats of franchise agreements that are available:

  • Single-Unit (also known as Direct-Unit Franchise) - This form of franchise is where you are provided with the rights to operate as a singular business unit.
  • Area Development Franchise - This franchise arrangement would provide you with plenty of options for unilateral growth; this then provides the rights for more than one unit within a set area.
  • Master Franchise - This form of franchise is the ultimate business format in terms of flexibility; it would allow you the rights that are enjoyed through an area development franchise, but would also allow you to go on to sell franchises to others.

For the Franchisee: The drawbacks of franchises

Whilst there are my benefits to becoming a franchisee, so too are there drawbacks, which include:

  • Upfront investment and a defined Agreement term - To receive the benefit of a proven business system so you need to pay upfront to tap into somebody else success.  So that’s understandable. You are committing yourself often for a five or ten year term, so you cant just walk away.  Bear in mind that because of the commitments provided by the franchisor, so you can sell your business onto somebody else though – so ten years doesn’t mean ten years without options to move on.
  • Being successful takes dedication - Many start out with an illusion of how much work success takes. No business is successful without hard work and dedication. A franchise is no different.  When business planning there is a fine balance between a franchisor selling the success of what could be, against conservative planning to provide realism.  Beware of ‘new’ franchise opportunities that may be more liberal with the former, with less experience of what is realistic.

Despite these downsides however franchising is a form of business that has seen unpanelled growth and if you dedicate yourself to the right franchise there’s a world of success that awaits.

For the Franchisor

If you are thinking about franchising your business then, for starters, you need to consider factors such as:

Is your business suitable to franchising?

To franchise your business it will need to meet certain criteria, such as:

  • Your business being financially stable,
  • Your product or service being one that can be rolled out to any area, with the same or similar success,
  • Your business affording a margin level that is healthy enough to franchise and still afford you and your franchisees a healthy share.

We hope that this has started you on your way to understanding franchises. Read more about franchising on our resources page or the search facility to find a franchise that suits you.

Do you have what is takes to become a Franchisee?Do you have what is takes to become a Franchisee?

Hear from Gail Jordain, Franchise Executive at Riverford Organic Farmers Franchise, the UK's leading Organic Food Business.

How to make your business term time onlyHow to make your business term time only

With the long school holidays approaching, here’s some tips from Victoria Casebourne of The Keepsake Company for fitting it all in.

Invest in a business that offers excellent financial rewardsInvest in a business that offers excellent financial rewards

Hear from Gary Farrer, Managing Director of the SureCare Franchise as he talks about why investing in a business can offer excellent financial rewards.

Is a domestic cleaning franchise for you?Is a domestic cleaning franchise for you?

The domestic cleaning sector is worth around £9 billion per annum in the UK and set to grow even more.

Questions to ask a FranchisorQuestions to ask a Franchisor

Hear from Franchise Director Simon Bartholomew talking about what a franchisor is looking for within franchisees and what questions you should ask a franchisor.

The Delivery Franchise Sector Is BoomingThe Delivery Franchise Sector Is Booming

Here we cover a select few franchise opportunities that demonstrate just how different delivery franchisees can be from one another.

Are you suited to self-employment?Are you suited to self-employment?

With a franchise you can start the business that you have always dreamed of using your skills and experience to earn a good income for yourself.

The Property IndustryThe Property Industry

With more people renting than ever due to the increasing house prices it truly seems that there has never been a better time to run your own estate and letting agents.

Residual Income - The opportunity for growth with reduced risksResidual Income - The opportunity for growth with reduced risks

Residual income provides security as well as an ongoing opportunity for growth with reduced risks

With franchising a lack of industry experience is no barrier to entryWith franchising a lack of industry experience is no barrier to entry

You do not necessarily have to have direct experience in a certtain industry sector to succeed...

Is franchising right for you?Is franchising right for you?

If you areconsidering a franchise business and asking yourself "is franchising right for me?" then there are some key questions that you will need to ask yourself...

What is a Franchise?What is a Franchise?

Though there are a few different types of ‘franchise’, business format franchising is probably why you are here.

Children Development FranchisesBusiness Information - Children Development Franchises

This is a sector that is seeing unprecedented growth, with more and more parents looking towards increasingly innovative ways to ensuring their child develops and progresses.

10 reasons to start a franchiseStarting a Franchise - 10 reasons to start a franchise

Here we explain why now more than ever may be the right time to start a franchise.

Mixing Business with PleasureIndustry Profile - Mixing Business with Pleasure

Explore the growing array of Pet Franchises and Business Opportunities.

Clean up with FranchisingIndustry Profile - Clean up with Franchising

It should not come as a surprise that cleaning franchises offer a fantastic opportunity that should not be dismissed. It is a booming business and showing no signs of slowing down.

Why Care Franchises provide a healthy option in starting a businessIndustry Profile - Why Care Franchises provide a healthy option in starting a business

If you are a committed and determined entrepreneur that is passionate about the health and wellbeing of other people, then you will thrive in this industry.

TotalFranchise

Franchises for sale in the UK. Explore franchise opportunities, franchise news, franchise case studies and franchise information on franchising and franchise business opportunities. Totalfranchise is the leading UK franchises resource to help you start a franchise business.

Latest News
To subscribe to our newsletter about the latest franchise opportunities and information, please enter your email address:
Latest Tweets

#Business #Resale of the Day: #Trophy #Pet #Foods #Franchise in #Gloucestershire for £20,000 - t.co/avU1msNMiC

11:01 AM Dec 11th

Do you want to start your own local van-based business? - t.co/GaL840xMMq #franchise #Van #MobileBusinesst.co/pnwWIKZnYl

10:00 AM Dec 11th
You have selected no franchises Complete your requests