Expanding Your Business Through Franchising: The Fundamentals

June 5, 2019



Franchising is an increasingly popular way of growing a business. As a sector, franchising is operating at record heights.

There are currently nearly 50,000 franchise businesses collectively contributing over £17bn and 710,000 jobs to the country’s economy, according to data from the British Franchise Association and NatWest.

If your business can be successfully franchised, you can establish a national (and possibly international) network of franchisees, all of who will be running identical versions of your business and generating income for you.

However, before you start spending time and money on creating and establishing your franchise network you should first ask yourself some fundamental questions:

  • Could my business be run by another person, with either suitable training or specific qualifications?

  • Is my business free from any geographical or seasonal limitations?

  • Is my business in a stable or growing market?

  • Have I “proved” my business model?

If the answer to all of the above questions is “yes”, then you have taken your first step towards establishing a successful franchise network.

There are many advantages to franchising over other types of business growth, including:

  • Lower capital requirement

  • Quicker growth

  • Better performing outlets

  • Less management responsibility

However, like all routes to business expansion, franchising has its own unique set of risks and challenges. It is therefore important that, before you start committing funds to establishing a franchise network, you research the sector as thoroughly as possible and also take advice from experienced professionals.


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