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Benefits of Franchising

The Franchise Company
The Franchise Company

The Franchise Company is a specialist franchise consultancy firm affiliated to The British Franchise Association. Our Consultants have a broad, varied and successful track record in franchising - as professional advisers, as franchisors and as franchisees.

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The Franchise Company Head Office: Regency House | 51 Coniscliffe Road | Darlington | DL3 7EH | Tel: +44 (0)1325 251455 London Office: Communications House | 26 York St.| London | W1U 6PZ | Tel. +44 (0)207 000 1018 www.franchisecompany.co.uk THE BENEFITS OF FRANCHISING Benefits to Franchisors The precise benefits of franchising to a franchisor will vary from business to business depending on factors such as the type of business, the market and the companys reasons for franchising. Generally however The business can expand with less capital (and therefore more quickly) than with the traditional route of opening company-owned branches, since the start-up costs of opening in each new area are met by the franchisees. Franchised outlets or areas generally perform better than company-owned branches, because franchisees, with their own capital invested in the business, are more committed to its success than employed branch managers. Outlets or areas that are geographically remote from head office are less troublesome to control when franchised, again because of the vested interest of the franchisee in the success of that outlet/area. Via the franchise agreement the franchisor can exercise a much higher degree of control over franchisees activities and the service delivered locally than with, say, distributors or agents. The day-to-day running of the individual outlets becomes the responsibility of the franchisees. The resources needed to build and support a franchise operation are generally less than a company-managed network. Benefits to Franchisees Franchising is generally considered to be a much less risky way to go into business because A properly constructed and ethically run franchise is a proven business model thats been run successfully by the franchisor in substantially the same form that franchisees will run it. The franchisor has developed, tested and de-bugged the business format, identified and solved all the major problems and acquired the essential know-how for running the business. Franchisees benefit from this experience and know-how in the form of training and ongoing support. A successful franchisor will have developed marketing and business generation skills and may carry out national/regional marketing campaigns on the franchisees behalf, to the benefit of the brand and the entire franchise network. As part of a larger network or family, franchisees benefit from greater brand awareness and customer confidence. A good franchisor has a vested interest in the franchisees success and will constantly work on the franchisees behalf to improve all aspects of the business - products and services, operations procedures, marketing methods, administration and accounting systems, etc. Its a well-worn phrase but as a franchisee youre in business for yourself but not by yourself. The Franchise Company is a specialised franchise consultancy business thats been helping and advising prospective franchisors and franchisees since 1991. To find out precisely how franchising can benefit you or your business, call us on one of the numbers below.

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Benefits of Franchising

  • 1. The Franchise Company Head Office: Regency House | 51 Coniscliffe Road | Darlington | DL3 7EH | Tel: +44 (0)1325 251455 London Office: Communications House | 26 York St.| London | W1U 6PZ | Tel. +44 (0)207 000 1018 www.franchisecompany.co.uk THE BENEFITS OF FRANCHISING Benefits to Franchisors The precise benefits of franchising to a franchisor will vary from business to business depending on factors such as the type of business, the market and the companys reasons for franchising. Generally however The business can expand with less capital (and therefore more quickly) than with the traditional route of opening company-owned branches, since the start-up costs of opening in each new area are met by the franchisees. Franchised outlets or areas generally perform better than company-owned branches, because franchisees, with their own capital invested in the business, are more committed to its success than employed branch managers. Outlets or areas that are geographically remote from head office are less troublesome to control when franchised, again because of the vested interest of the franchisee in the success of that outlet/area. Via the franchise agreement the franchisor can exercise a much higher degree of control over franchisees activities and the service delivered locally than with, say, distributors or agents. The day-to-day running of the individual outlets becomes the responsibility of the franchisees. The resources needed to build and support a franchise operation are generally less than a company-managed network. Benefits to Franchisees Franchising is generally considered to be a much less risky way to go into business because A properly constructed and ethically run franchise is a proven business model thats been run successfully by the franchisor in substantially the same form that franchisees will run it. The franchisor has developed, tested and de-bugged the business format, identified and solved all the major problems and acquired the essential know-how for running the business. Franchisees benefit from this experience and know-how in the form of training and ongoing support. A successful franchisor will have developed marketing and business generation skills and may carry out national/regional marketing campaigns on the franchisees behalf, to the benefit of the brand and the entire franchise network. As part of a larger network or family, franchisees benefit from greater brand awareness and customer confidence. A good franchisor has a vested interest in the franchisees success and will constantly work on the franchisees behalf to improve all aspects of the business - products and services, operations procedures, marketing methods, administration and accounting systems, etc. Its a well-worn phrase but as a franchisee youre in business for yourself but not by yourself. The Franchise Company is a specialised franchise consultancy business thats been helping and advising prospective franchisors and franchisees since 1991. To find out precisely how franchising can benefit you or your business, call us on one of the numbers below.