10 reasons to get into franchising
Franchising can be a great way of starting a business and with hundreds of franchise opportunities on offer, find out why it might be the right option for you...
Why not make 2014 the year you start your own franchise business?
Earlier this month, the British Franchise Association (bfa) and NatWest released the 2013 Franchise Survey which found that UK franchise businesses are performing at their best since the country entered recession in 2008.
Assessing the franchise sector from 2008 to 2013, the survey suggested that the industry had grown by 20% in comparison to a 2.5% increase in the economy overall, and found franchise employment to be at an all-time high with over 250,000 jobs created in the last 12 months.
But how much money can you make from franchising? Turnover for franchise brands across England and Wales was also reported to be at its highest since 2008 with Wales reporting a record 33% increase, the north west growing by 27%, the north east by 14%, and the south east by an impressive 42%.
Franchising continues to be a dependable business opportunity and UK franchisors and franchisees are confident about the future, with nine out of 10 franchisors reporting optimism for trading conditions over the coming year.
Given these findings, it’s easy to see why franchising is an attractive option for those of you thinking ‘I want to start my own business’ but who would prefer the security of a well-known brand.
Here are 10 top reasons to choose franchising over starting a business from scratch:
- Franchising provides a variety of businesses you can buy into and has something for everyone.
- Franchised businesses range from multi-million pound operations to part-time businesses run from a bedroom so there is something for every budget.
- Franchising has been proven to be one of the safest ways of starting a new business compared to other business start-ups. But how profitable is franchising? In the 2013 bfa/NatWest Franchise Survey 92% of franchisees reported profitability and an impressive 80% of new franchisees who launched in the last two years were already turning a profit.
- Franchising is a means of starting and running your own business with a very high success rate, provided you choose a good franchise in the first place.
- A good franchise will offer you a proven business format with initial and continuing support. Franchisors often have field support staff to help franchisees.
- Your business will operate under an already-established brand that has been developed and proven in the marketplace and the franchisor continues to research market demands so you don’t have to.
- Franchising gives you the opportunity to build a profitable business that can be resold, if you choose to.
- You don’t have to come up with the business idea– someone already has and tested it so you don’t have to make any expensive mistakes. You should receive a comprehensive operations manual and training programme as part of the franchise agreement.
- The franchisor has a marketing, sales and advertising strategy to promote the franchise network so you benefit from a holistic approach.
- As part of a franchise you benefit from network buying power so your costs are less, plus you have greater access to finance because banks look favourably on the franchise sector.
Brian Smart, director general of the bfa, commented:
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“There are now nearly 1,000 franchise brands operating in this country across multiple business sectors, offering plentiful franchise opportunities for those undertaking the necessary research and due diligence to join the franchise success story.”
The BFA runs regular “essential” seminars for prospective franchisees and franchisors at various locations throughout the year. Log on to the BFA website for more information.