UK Franchising: Profitable Partnerships?

Whilst franchising remains one of the fastest ways to grow and expand a business, does it also mean that it opens the door for those who want to get rich quickly with little or no regard to the ones, who trust them and invest their hard-earned cash into such "franchise" schemes? Who benefits the most from franchising? What can one do to ensure that they don't fall into the "bad franchise" trap? And should franchising finally be regulated in the UK?

Selecting the right Franchise Development Consultant

All businesses must continue to grow in order to stay in the game as otherwise they run a risk of stagnating and, eventually, ceasing trading. Those businesses that survive the start-up period inevitably arrive at the point where they need to get to the next level in their life cycle.

As one of growth strategies, franchising allows smaller companies to effectively compete with larger businesses. Franchising provides businesses with the ability to gain market share by increasing their points of distribution. Franchises are generally able to grow and expand their businesses faster than conventional businesses and franchise expansion requires minimal capital as the initial investment at the unit level is covered by franchisees. Franchise brand’s growth is not limited to one or two locations; franchising offers the opportunity to have multiple units throughout the country and the world. Usually, the success of a business depends upon its location and/or the staff. The fundamental principal for the success of a franchise is its ability to replicate its success.

Many business owners make countless regrettable decisions along the way. The decision of expanding a business through franchising is never an easy one and requires careful analysis and assessment of the business and its potential, thorough research and planning. Business owners could achieve the lifestyle they desire in much shorter timeframe whilst retaining that unique feel in their business as it grows and expands nation- and worldwide.

Developing a successful concept and business model is one thing, but franchising a business, developing a much larger network can be a daunting and complex process. Building a franchise is like constructing a building – get the foundation wrong and the results could be disastrous. Understanding franchising in all its aspects is essential before committing resources to its development. Taking professional advice can save a considerable amount of headache, time and money through the various stages of franchise development. An independent third party advisor who has many years of experience can bring great benefits to any individual or company considering franchising.

Selecting the right Franchise Development Consultant for your business should be no different to a selection process of any other supplier. A couple of other things to consider are:

• Experience: a good and established franchise specialist would have not only an in-depth knowledge of the franchise industry, but also a great deal of experience in developing businesses and should be able to demonstrate a comprehensively professional approach to advising their clients. After all, apart from working on taking your business to franchise, the core business needs to be developed in parallel with the franchise in order to minimise risks and ensure success.
• Continuity: consider whether your adviser is a stand-alone consultant or a part of a larger organisation or network. Businesses that use services of Business Advisers who are a part of larger networks are more secure in thought that their businesses are well looked after.

One thing I’ve learned over the years is that a step-by-step approach is vital.

To Franchise or not to Franchise?

Business owners who are looking for advice on how to grow their business, ought to consider franchising as an option.

Business: Can't Grow OR Won't Grow?

Over the past few months when I was talking to numerous people about their strategies during this recession, I was amazed at the number of people saying "business is slow so we need to cut our costs down on staff, training and marketing" or "just sitting tight and see what happens". When I asked someone if they had considered an expansion strategy instead, they just laughed and walked away. We all seem to find an excuse not to do what is required and needed to move our businesses forward and, subsequently, the economy. Of course, it is easier to blame the government, banks, Americans (now that the Cold War is over and we can't really blame the Russians)... But how about taking responsibility for our actions? What's wrong with accepting ownership for our own businesses? Do you think that your bank will do it?

Instead of fighting and pulling together, it seems as though as this country is falling apart. We all seem to have accepted the defeat. COME ON, BRITAIN! Just ask yourself: if we all "sat tight" and did nothing, then who would we do business with? Who would buy our products or services? Who would know about us? We might as well look at that grand idea of Karl Marx and Lenin, called Communism, and consider living for non-profit and just do barter deals. We don't need money, do we?

Well, here's a thought for you to consider. YOU CAN GROW YOUR BUSINESS! How? Well... Read on...

One of the fastest, easiest and safest ways to grow your business (and there are a few) is franchising. Please allow me to demonstrate why:

UK Franchising:

• There are currently over 809 franchise systems in the UK, which equates to 84,274 businesses
• The franchise industry is now estimated to be worth £12.4 billion
• There are an estimated 383,000 people employed by franchises
• The vast majority (91%) of franchisees say they are profitable
• More American-based franchises are looking to expand into Europe
• Franchisors are seeking to grant over 190,000 franchise licences to aspiring business owners across the UK
• The number of franchises in the UK has risen by 3% in the past five years

Opportunity:

• There are currently over 2.22 million people unemployed in the UK
• Average redundancy payout is over £5,000
• Redundancies and uncertainty about jobs are making thousands of people to seriously consider investing into a franchise
• On average there are 22,000 global searches per month for people looking to buys a franchise
• Approximately 2,000 searches were made in the UK during the month of April alone!

So, I hope that you see the potential from the above... I do not believe that there are no possibilities of growing your business out there and all of the above demonstrates it. If you don't do it, someone else will!

Imagine now, what income opportunity this could generate for you?... Now, have I got your attention?

(Sources: BBC News, The Franchise Magazine, Which Franchise?, UK National Statistics, The UK Franchise Directory)