Franchise Your BusinessApril 29, 2022
http://fdsfranchise.com Are you considering franchising your business? Currently over 1,000 companies in the UK are using franchising as a route to business growth, and your business could be suited to taking advantage of this proven methodology too. Franchising is the granting of a licence by a ‘franchisor’ to a ‘franchise owner’, entitling the franchise owner to trade under franchisor’s trademark, receive comprehensive training and benefit from ongoing support in the operation of a proven business concept. The benefits to the franchisor are threefold:
Firstly, franchising provides an opportunity to achieve a rate of network growth which would be otherwise require a huge amount of company funding to replicate. The franchise owners fund the premises lease acquisition and fitting out, recruit and train the staff and implement the local marketing campaign. By speeding up expansion, your business achieves higher economies of scale earlier, stronger brand awareness, is much sooner able to challenge for national contracts and, in the case of a fledgling market, is in a much better position to capture early market leadership and establish a dominant position over competitors.
Secondly, franchising ensures your outlets are managed by motivated individuals with strong knowledge of their local market. As a franchise owner is in essence self employed, their earnings depend entirely upon the success of their own endeavours, as opposed to a salaried manager whose earnings — discounting bonuses — are unrelated to performance. Also, the legally binding nature of a Franchise Agreement prevents a franchise owner from leaving and using your business concept and systems to set up in competition for a significant period of time, whereas a staff member is under no such restriction.
Finally, funding a Franchise Development Programme provides a fair and fast return on your capital investment. While the initial franchise fee should cover the costs involved in franchise owner recruitment, training and launch support, the most important cash flow comes from the ongoing Management Service Fee. This is usually a percentage of the franchise owner’s turnover paid to cover the costs of ongoing support and provide profit for the use of your intellectual property and ongoing efforts.
If you are interested in investigating the franchise potential of your business, Franchise Development Services (FDS) can provide market-leading assistance. FDS is the longest established franchise consultancy in the UK having assisted hundreds of companies to develop successful franchise operations since 1981. Its specialist team of franchise consultants combine decades of experience in assisting companies, ranging from solo-operators through to established companies, to conduct an evaluation of their suitability to franchise, construct a comprehensive and ethical franchise package and recruit a national network of franchise owners.
FDS can help you understand the franchise concept, study the market and identify the modifications that may be required to your business to ensure a smooth transfer to franchising. A thorough pre-entry Evaluation Analysis will examine and report on 21 areas of your business, enabling you to reach a highly informed decision and identify the most practical and profitable route to follow. For the development of your business into a franchise, FDS offers a one-stop covering a full range of services. From ascertaining the true market value of the franchise package; setting out a detailed franchise business plan; and adjusting and improving operational procedures; through to developing an initial training programme; developing administrative systems to monitor franchise owners’ progress; and creating the financial projections, FDS can assist in every area of creating a professional, ethical and ideal franchise concept from your successful business operation.
When your franchise is ready to start recruiting franchise owners, FDS can provide a range of services designed to assist you in cost-effectively reaching the ideal quality candidates with a serious interest in investing in a franchise. FDS can market your opportunity through its range of high quality websites and publications, including The Franchise Magazine and The UK Franchise Directory, both printed and online. The recruitment of your entire franchise owner network can also be outsourced to the FDS FranMatch service. This provides a professional lead generation and management service that will present you with pre-qualified quality candidates that match your profile and have a strong interest in your specific opportunity.