If you are new to the world of franchising then there may be some
questions that you have, the following should cover the majority of
your initial questions about franchising.
What is franchising?
Franchising is a successful method of growing a business. The
franchisor grants a licence to the franchisee which enables them to
sell the products or services in the names, style and brand of the
franchisor. In return for a royalty fee or profit from the sales
achieved.
Who franchises?
There are many high street well know brands that operate with a
franchise system, these include McDonalds, Pizza Hut and
Thorntons!
What are the benefits of franchising over starting on your
own?
JWhen you take on a franchise, you are benefiting from the
franchisors experience, support and know how. You don't have to
reinvent the wheel as it is a proven business model. As a
franchisee you also benefit from the widely recognised brand of the
franchisor.
Can I do what I want as a franchisee?
If you choose franchising then you are buying into a proven
business model. It is therefore expected that you operate within a
guideline, and to the operations system provided by the
franchisor.
As a franchisee am I protected?
If you enter into a franchise relationship then it is more than
likely you will have to sign a legal agreement. The agreement will
clearly outline your obligations to the franchisor and the
franchisors obligations to the franchisee.
Can I get help raising finance?
Yes most reputable franchise systems will the backing from major
high street banks.
What is the British Franchise Association?
The BFA is a self regulatory body of the franchise industry, it
acts in the interest of the industry and promotes ethical
franchising. Any member of the BFA has to adhere to and meet the
standards set and operate in an ethical and correct way.
