What is a franchise?
Franchising is granting a right to another party to market the goods or services of a company. There are many different types of franchise businesses, popular franchises include: fast-food, health and fitness, and financial services.
The person who runs the franchise is known as the 'franchisee', the person who sells the franchise is the 'franchisor'. The franchisee needs to follow rules and guidelines which are set by the franchisor and will normally need to pay an upfront fee, as well as ongoing loyalty fees.
Why should I consider a franchise?
Franchise opportunities allow thousands of people to run their own business. A franchise is more likely to be successful than a new business as the products and services not only have a successful track-record, but they have a strong brand image, something a new business idea simply does not have as this image takes years and years of good customer service and marketing to build up. This reduces the risk associated with a start-up business.
If you are considering becoming a franchisee, there are websites which offer help and advice. Information is provided on the options that are available, the questions that you should ask and general tips.
There are also websites where you can search for companies that are offering franchises. You can select the industry that interests you and the location that you require. You will then be shown a list of relevant companies, with further information on the business and the costs. You can also request free, no obligation information from the company by completing a simple, online form.
Before getting involved with a franchise, you should ensure that you are fully aware of the costs. As well as the fee that will need to be paid upfront, there may also be other costs to consider, such as leasing property or equipment from the franchisor. You should also check any restrictions that may be applied with regards to suppliers, as well as restrictions imposed should you decide to sell the franchise.
If you are still uncertain whether franchising is the best business decision for you, you could hire a franchise consultant. They can provide you with further advice and answer an queries that you may have regarding the process.
So, to summarize:
- There are many business opportunities available
- There are user friendly websites where you can research the different options
- You can hire a consultant for further help