Why should you sell a Franchise?
For a company with a product or service to sell, franchising provides an excellent opportunity for rapid expansion without an enormous outlay of capital. It is a method that allows a business to conserve capital whilst at the same time achieves growth and market penetration.
The single greatest advantages is that their franchisees are 100% committed as they have a stake in the business rather than staff who simply work for a salary and may be less motivated. Franchising also harnesses the entrepreneurial skills of the franchisees to gain synergistic growth and development of the business.
Before you can franchise, the business model must be clear, proven and simple enough to be capable of being replicated and the business system itself has to be clearly set out into an operations manual that covers every aspect of the business.
The Franchisor has to understand that this is not a quick way to make money, but a sensible way to expand and get on board people that are equally committed to the business success.
Why should you buy a Franchise?
Franchising offers these individuals an opportunity to break free & own their own business whilst at the same time minimising the risk of starting an entirely new business from scratch.
Franchising allows you to follow a tried and tested business system which will greatly improve your chances of success, as the statistics prove.
Franchising enables you to become involved as part of a company that has established a tried and tested system and has achieved some market share and name awareness. When starting a business as a self employed person you will make mistakes but an established franchise will have ironed out those problems. They will have a written system contained within the franchise manuals as to how operate the business so as to achieve maximum sales and profitability from day one.
One of the most important aspects of becoming a franchisee is that help is on hand at every stage. The Franchisor will provide initial training, launch and marketing support and day to day help. The fact that as a franchisee you are in business for yourself but not by yourself is a major factor in the improved success rate that is associated with franchising.
If you decide to buy a franchise, do not relax and wait for the Franchisor to do all the work, that simply won’t happen. Franchising can provide a structure and a proven system but it is still your hard work and effort that will be decisive in making it work.
A decision that you have to make before buying a franchise is whether you will trade as a self-employed person or through a limited company. We have a section on this website asking if you should trade as a limited company but we have also created a separate leaflet describing the benefits of franchisees trading as a limited company.