What is Franchising?
Franchising is a business strategy that has been used for many years to enable entrepreneurs to establish and operate their businesses successfully using the resources of an already established brand and business model. As a franchise consultant, our primary responsibility is to provide guidance through the franchising process and support business owners in creating a successful franchise system that allows for business expansion within and outside the UK. Franchising involves two parties; the franchisor, who is the established company, and the franchisee, who pays an initial fee and ongoing royalty payments to the franchisor for using the brand, products, or services.
Styles of Franchising
Two types of franchising exist; product distribution franchising and business format franchising. Product distribution franchising involves selling products or services to the franchisee, who then resells them to the consumer, while business format franchising licenses an entire business system, including the trademark, operational systems, training, and support.
How We Can Help
We can provide you with a comprehensive franchise business plan that covers all aspects of your franchising strategy, including evaluating your business model, assessing its potential to be replicated, registering your trademarks and intellectual property with relevant authorities, developing a screening process to choose the right franchisees, developing a marketing strategy to reach your target audience, and providing ongoing support to your franchisees.
The History of Franchising
The history of franchising in the UK can be traced back to the early 20th century, with the Singer Sewing Machine Company being the first franchise to operate in the UK in 1905. The 1970s saw the growth of franchising in the UK as more American companies entered the market, and the 1980s and 1990s saw the adoption of the franchise model by UK companies as a way of expanding their businesses. Today, franchising is a significant part of the UK economy, with an estimated 48,600 franchised units generating £17.2 billion in sales in 2018.