Published on July 8th, 2014 | by Sally Wenham
Have You Considered Franchising?
Here at the Post Office Shop we have been interested to learn that there are more than 800 businesses operating as franchises employing more than half a million people. As a means of achieving rapid growth for a business, franchising is certainly one option to carefully consider as either a franchisor or as a franchisee.
A particularly suitable option for a business operation which is easily replicated, a franchise is a legal and commercial relationship between the owner of a trademark or trade name and an individual or group wishing to use that same identification for their business.
As the owner of a business, the franchisor grants a license to a local operator to use the franchisor’s name, product or service for a period of time. This local operator is referred to as the franchisee.
Whilst the Natwest bfa Franchise Survey we’ve seen reveals that franchisees are typically an average of 49 years old, it is also seen as an increasingly popular career path for younger people to pursue too, especially as most franchise opportunities incorporate structured training and support giving a franchisee a platform to prosper in their new venture.
So buying a franchise can be a very cost-effective way to grow under the umbrella of a well-known brand, often secured with a fairly modest franchise fee sum in addition to weekly or monthly royalties owed to the franchisor.
Meanwhile, when considering whether or not to become a franchisor, the owner of a business needs to consider if it is actually suitable and ready to be franchised. An established and profitable operation already succeeding from more than one occasion and relatively easy to duplicate is most likely to spark the interest of prospective franchisees.
Meanwhile for a prospective franchisee, any lack of life or business experience they may have can be addressed by the support structure that a franchisor can usually provide as part of the agreement.
So whether you are either a prospective franchisor or franchisee, it could well be a career path worth considering