Name: Iftikhar Hussain Location: Edinburgh...
The Franchise opportunity
The business opportunity in the franchise sector is enormous with over 1,000 businesses employing more than 500,000 people and with entry costs from as little as £5,000 right up to £300,000.
How Franchising Works
Essentially franchising is both a marriage and schizophrenic! Confused?
Franchising is a marriage because it is the union of two parties- often with different skill sets – working together to contribute to a common goal.
It is also though schizophrenic! It is a strange mixture of conformity and individuality that really does combine the best bits of big business and small operations.
To be successful, a franchisee must comply with the franchise system and yet such compliance will enable the franchisee to achieve greater levels of fulfillment.
In my twenty years in franchising I have never come across anyone who had a ‘franchise epiphany ‘and woke in the middle of the night crying ‘eureka I must have a franchise’
The simple answer to ‘why franchising’ is, fairly boringly - reduced risk, more security, greater level of success and in-built business support.
Someone starting their own independent business would be responsible for everything in that business from sales to accounts to advertising to creating new products/services.
In a franchise the franchisor provides a proven business system, a brand, allows use of trademarks, gives of their experience and knowhow and delivers a ‘bank of house’ support structure.
Different franchisors provide support in different ways and the range, depth, and frequency will depend on the company but more so on the individuals concerned.
We run four businesses – Recognition Express, Kall Kwik, ComputerXplorers and The ZipYard – that covers B2B, retail and education, two of which have been in business for some 35 years. Below are the components that made up ‘Franchise Support’:
These then are ten component parts of the franchisor support pack. It is not extensive and some franchisors will have some different support tools – but for me support is about availability of the franchisor, interaction with franchisees, practical advice to support the system and solid marketing and PR tools.
Of course it is then up to the franchisee whether he/she uses the support system.