Franchise development is a marketing strategy That Can Be Used For business expansion.
What is a franchise business?
A franchise business is a contractual agreement where one party (the franchisor) grants another party (the franchisee) the right to use its trademark or trade name, as well as intellectual property in the form of business processes and systems.
The agreement allows the franchisee to market and produce a good or service according to agreed conditions.
In return the franchisee pays the franchisor a one-time franchise fee plus an annual management fee based on a percentage of sales revenue together with a contribution towards advertising and IT support.
What are the advantages and benefits of franchising?
The advantages for the franchisee are (1) acquiring instant brand recognition (2) a proven and successful business model (3) support in running and promoting the business (4) training of staff, and (5) continuing support to develop the business further.
Consequently, the benefits for you as the franchisor are rapid expansion of the business and increased earnings with minimum capital outlay.
The franchise structure is based on a proven and successful business model.
A franchise development strategy suits many business types, for instance:
Hotels chains, restaurants, coffee shops, fast food,travel agents, education, entertainment, tutoring, personal trainers, gardening, pet services, health and beauty, accountancy, estate agencies, plumbing, cleaning, gardening, couriers, car rental, vehicle repair, printing, office supplies, training, recruitment, accountancy
Setting Up a Franchise Business
Franchise Business Model – Creating a Franchise Development Plan
The creation of a successful franchise network requires a customised franchise development plan. You can count on our expertise and experience to help you devise a franchise development plan.
Franchise Development Programme – Ensuring your Business Model is Proven and Can be Replicated
Once your business model is proven it can be replicated. The development plan sets out the actions required to launch your franchise network. In this respect, the development plan needs to be built on firm foundations. In other words, research is required to build a comprehensive review of the industry you are in. This will ensure that your franchise model is based in a market that has growth potential.
Franchise Documentation – Advising on the Legal Documentation for your Franchise Network
Your business will need protection, therefore, we support you in the creation of non-disclosure agreements and the terms and conditions required to safeguard your franchise business model.
Franchise Operations Manual – Producing Operations Manuals for your Franchise Network
The management and control of your franchise requires the documenting of your business operations and systems. We’ll help you to create an operation manual, as well as franchise training manuals.
Franchise Marketing Programme – Developing a Marketing Strategy for your Franchise Network
The success of your franchise network will depend on an effective marketing strategy and plan. An effective plan will identify your ideal franchisees in the form of a buyer person. As well as, key markets with growth potential for your franchise system, a communication strategy, public relations strategy and social media plans.
Franchisee Recruitment – Creating a Franchise Recruitment Plan for your Network
Everything we do is backed by research
According to the NatWest Franchise Report 2018, the total contribution of franchising to the UK economy is estimated to be £17 billion (£15 billion, 2015).
The sector employs over 700,000 people. There are an estimated 49,000 franchised units in the UK and 20,000 franchisees.
It is claimed that profitability for franchisees remains high at 93% and 60% turnover more than £250,000.
Failure rates are low, with fewer than 1% per annum closing due to commercial failure.
Book A Free Consultation Meeting
By taking advantage of our free consultation meeting, you’ll gain the feedback needed to pursue your business aims and objectives.