Guide to becoming a Franchisor
How to become a franchisor
Franchising your business often helps you achieve rapid business growth. You can create a number of outlets quickly and you will only need a small central organisation with a few highly skilled staff. As franchisees invest their own money they are likely to be highly motivated with lots of local knowledge. However, franchising is not suitable for every business, view the advantages and disadvantages of becoming a franchisor.
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Download our 'Growing Your Business through Franchising' guide (PDF, 162kb).
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Franchise exhibitions are an ideal way of improving your knowledge of franchising. You will have the opportunity to attend free seminars, meet a range of franchisors and obtain independent advice from franchise specialists.
For free exhibitions tickets
, e-mail us your name, address and the number of tickets required.
Is Franchising Right for me?
Due to initial capital expenditure the costs may be high – but once appointed, your franchisees will pay you a fee, reimbursing your costs. And once you're up and running, you'll receive a regular income from each franchisee by charging a management service fee or by marking up the price of goods supplied.
There are some very clear advantages and disadvantages of franchising your business:
Advantages
Rapid business growth – you can create a number of outlets quickly.
You'll only need a small central organisation with a few highly skilled staff.
Franchisees invest their own money, so they're likely to be highly motivated with lots of local knowledge.
Disadvantages
Developing a franchise network can be expensive, in terms of management time and capital outlay.
Your investment can't be recovered until franchisees are appointed and you receive fees and then a regular income from them.
Because your franchisees are independent, they can sometimes disregard contract terms, try to change the style and direction of your business or even use their in-depth knowledge to set up as a competitor.
Have you also seen our Guide to becoming a franchisee? Click here.
