What are the benefits?

Franchising first became a recognised force in the UK during the 1970's

According to the 2001 survey carried out by the National Westminster bank and the British Franchise Association, the overall turnover of the franchising industry last year is estimated at £9.3 billion, with the number of business format franchising systems growing to 665 an increase of 3.6%.

The 27,000 individual franchised units in the UK are growing to give total employment in the sector of more than 316,000. This makes franchising larger than the whole energy sector and almost as big as the whole of the armed forces.

So lets have a look at the benefits of franchising:

Better chance of success
Research has shown that of all businesses starting today, only 20% will still be trading in 5 years time. With franchising these figures are reversed. The reason for this represents the other benefits of franchising.

A Proven Business
With franchising you are buying into a business that is already operating. The Franchisor will have made mistakes along the way and will have learnt from them. This knowledge is passed on as part of the franchise system. It enables you to start your business at a much higher point on the learning curve.

Support
Within a franchise there is or should be a great deal of help and support available. The support that you will need will change as your business grows. From day one you will need training and will be reliant on the Franchisor. As you become established, you will benefit from different types of support such as staff training and National account business. It may well be possible to collaborate with other franchisees on larger projects and just being part of a larger organisation can help.

Problem solving
From time to time you are going to hit problems. Your Franchisor should be able to provide you with the necessary technical support. However it is invaluable to be able to talk things through with other franchisees, or the support team who may well have dealt with the same problem recently.

Management support
Many Franchisor's will hold review meetings with you to discuss all aspects of the business. You will be able to check your progress, celebrate your successes and plan for the future. Many businesses have failed in the past due to lack of good business advice.

Product Research and Buying Power
As part of a franchise network much of the product research and testing process will be carried out for you. It is also possible to take advantage of group buying discounts

What are the benefits?

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