Franchising is a business form which has become more and more popular throughout the economy.
All types of companies can benefit from franchising, whether it involves small businesses becoming a franchise and selling a large corporation’s product, or bigger businesses expanding their own businesses by opening a network of franchises.
In this article, experienced Corporate & Commercial Solicitor Paul Longland looks at franchises in more detail; outlining the pros, cons and giving his advice.
What is franchising in business?
Franchising, in business, is where a company (franchisor) allows another party (franchisee) to use their know-how and brand name and sell their products.
The third party will either pay a one-time or monthly/annual fee to the franchisor in return for using the brand.
McDonalds is probably the most well-known example of a franchise. This company allows many third parties to use their brand name and sell their products around the World. They also operate their own outlets in parallel.
Is franchising your business a good idea?
Franchising represents an important part of the economy, and allows a person or company to own and run its own business under the umbrella and security of a well-known brand or trademark.
What types of business can be franchised?
All sorts of businesses can be franchised if they involve the supply of goods or services, but especially if their market is the consumer or small business market.
You might be surprised at some of the famous names, and variety of different businesses, that use franchising; for example Skechers, Costa Coffee and Pandora all use franchising.
Why should I turn my business into a franchise?
The franchise gives a new business starter the security of trading under a well-known brand, with an assured source of supplies and the benefit of the many years of experience that the franchisor has put into developing the business.
What are the advantages of franchising your business?
Paul looks at the advantages, disadvantages and more in the full article. Click here to read it.