The franchising concept

So you’ve decided that you would like to run your own business or you’re thinking you’d like to ‘buy’ a business? Well look no further, as franchising could be the career path for you


One of the main reasons people choose franchising is because you can become your own boss without the many risks involved with a general business start–up. It is the best of both worlds – you can be independent running your own business while having the support around you if you need it from the franchisor.

A franchise is a business arrangement between a company that has a proven business system and a well-established brand, known as the franchisor, with an individual who wishes to replicate that system known as the franchise owner or franchisee.

Not only are franchise owners happy that they are able to run a business already set up and ready to go but franchisors are able to expand their brand in new areas or also known as franchise territories, with minimal capital investment in setting it up, giving them the opportunity to grow their brand nationally.

Initially, however, a business can only become a franchise after a certain number of years operating so that they can prove that their business model is genuine.

When a business becomes a franchise, it is then that the individual, the franchise owner, may buy licensed rights to copy the model in an agreed area / territory for a set number of years. The franchisor then awards the franchise owner with the brand, manuals, equipment, products, operational support, training resources, and support services – all designed to successfully launch and sustain their franchise.

As part of the arrangement, the franchisor is responsible for training and continually supporting the franchise owner and ensuring the manual is fully up to date and explains the complete franchising package.

You may think that franchising is merely purchasing a name but if the franchise does not prove to have a genuine business system behind it, it is not a true franchise.

One of main factors to consider is that not every franchise is a well established brand name, and quite often this can work to the franchise owners’ advantage. Joining a new franchise from the very beginning means you can grow with its development and reap even further rewards.

There are many different types of franchises to choose from, so it is important to do your research before making your final choice. Here we explain the six main types.

1. Investment – where the franchise owner invests substantial funds to capitalise on a high-cost franchise system and, although retaining overall strategic management, it is where the franchise owner hires others to manage the actual outlet.

2. Management – in this franchise the franchise owner controls several territories or areas while managing a team of operatives.

3. Executive – these are known as white-collar franchises in areas such as recruitment, financial services, personnel or project management.

4. Retail – a high investment in commercial property, equipment and staff to help operate a high-yield business system.

5. Sales & Distribution – the franchise owner is usually on the road selling / distributing products / services in their chosen territory or area.

6. Hands-on franchise – these are usually ‘man and a van’ home-based services, installation / repair businesses in sectors such as cleaning, motor services and maintenance.

Whatever type of franchise you eventually choose will depend on your lifestyle, the investment capital you have, and the level of ambition and drive you are willing to give back into the business. Overall however the chances of succeeding with a franchise are much higher than if you tried to set up on your own.

Written by Jenna Leeds