If done well, franchising is a powerful tool for business development, growth and competitiveness, argues dan archer, head of marketing for the bfa.
Over the past 10 years franchising has grown dramatically in the UK as more and more businesses look to develop their operations and networks through franchising. There are now 759 business format franchise systems – a growth of 60% since 1995 – and 30,800 franchise units.
If it is done well, franchising is a powerful tool for business development, growth and competitiveness. The fundamental elements of a business format franchise are: piloting to prove the idea works and can be replicated; initial training for franchisees in the operation of the business; the ownership of the business by the franchisee and the capital investment they will have to make.
The provision of ongoing support by the franchisor is also a vital element. While the franchisee is the owner of the business, it is important to bear in mind that it is the franchisor’s system and brand which the franchisee is operating under and therefore a continual dialogue between franchisor and franchisee is central to the success of the network as whole.
Continue reading British Franchise Association: The Franchise Model.
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