Franchising is where the owner of a franchise system (‘the franchisor’) agrees to license the use of its operating systems, brand and other Intellectual Property, and provide training and ongoing support to enable another person (‘the franchisee’) to start up and run an identical business elsewhere.
Franchisees of well-established franchise systems benefit from:
- businesses based on existing models with proven track-records,
- initial training and ongoing support (which also make franchise businesses more accessible to those without work experience or skills),
- better access to bank lending to finance the purchase and start-up costs,
- economies of scale and greater purchasing power that derive from being part of a larger business network.
Franchisees go into business for themselves, not by themselves. Franchising can therefore be described as supported self-employment. 90% of franchise businesses are still operating after 5 years. They are therefore a very sustainable form of self-employment. Many franchise businesses can be started with little experience, training and cost.
Franchising is well-established in the UK, where there are almost 37,000 franchise businesses, employing over half a million people and generating £12.4bn in revenue.
With 900 franchises to choose from, franchising includes not only well-known fast-food and retail brands, but also many that provide services directly to private consumers in their homes or to other businesses using the franchising model. These include everyday services such as:
- Van franchise opportunities – covering sectors such as tools, pet services, car valeting, cleaning
- Cleaning franchise opportunities – including both domestic and commercial contract cleaning services as well as oven cleaning, bin cleaning and other outdoor cleaning services.
- Children’s franchise opportunities – usually class room and activity based including, sports, health, drama, cooking, arts & crafts
- Management franchise opportunities – such as white collar franchises in property, care industries and retail and other sectors
Therefore, you can find a franchise to meet your interest, whatever it is.