1. The Franchise Company
Head Office: Regency House | 51 Coniscliffe Road | Darlington | DL3 7EH | Tel: +44 (0)1325 251455
London Office: Communications House | 26 York St.| London | W1U 6PZ | Tel. +44 (0)207 000 1018
www.franchisecompany.co.uk
Could Your Business be Franchised?
Franchising is a tried and tested business growth strategy that has enabled many entrepreneurs to
build wide-scale networks of local ‘branches’ or ‘outlets’ more quickly (and more
profitably) than by other means. But not every business is suitable to be
franchised and not all business owners are cut out to be franchisors.
Here are some rules of thumb to consider before going much
further:-
• Your business model should be proven, profitable and
replicable (i.e. capable of being taught to and operated by
franchisees).
• Your market place should be stable or growing.
• Your motives for franchising should be positive and long-term
(i.e. franchising is a well-reasoned strategic growth option, not a
cure-all for an ailing business or means of quick-gain.)
• You must be able to build good working relationships with franchisees.
These are just the ground rules and there’s more to look at than can be covered here. But if you do
it right franchising can offer very worthwhile rewards. Here are some of the benefits:
Benefits to Franchisors
The precise benefits of franchising to a franchisor will vary from business to business depending on factors
such as the type of business, the market and the company’s reasons for franchising. Generally however…
• The business can expand with less capital (and therefore more quickly) than with the traditional
route of opening company-owned ‘branches’, since the start-up costs of opening in each new area
are met by the franchisees.
• Franchised branches, outlets or areas generally perform
better than company-owned ‘branches’, because franchisees,
with their own capital invested in the business, are more
committed to its success than employed branch managers.
• Branches, outlets or areas that are geographically remote
from head office are less troublesome to control when
franchised, again because of the vested interest of the
franchisee in the success of that outlet/area.
• Via the franchise agreement the franchisor can exercise a
much higher degree of control over franchisees’ activities and
the service delivered locally than with, say, distributors or
agents.
• The day-o-day running of the individual branches/outlets (payroll, staff management, admin, book-
keeping, etc.) is the responsibility of the franchisees, and therefore...
• The resources needed to build and support a franchise operation are generally less than a company-
managed network.
The Franchise Company is a specialised franchise consultancy business that’s been helping businesses of
all shapes and sizes to successfully enter the franchise arena since 1991. For a definitive answer to the
question “Could (and should) your business be franchised?” call us on the number below.