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Why choose franchising?

on Thursday, 19 August 2021. Posted in Insight

The directors of business coaching specialists, Chrysalis Partners, extol the virtues of becoming a franchisee.

Why choose franchising?

The directors of business coaching specialists, Chrysalis Partners, extol the virtues of becoming a franchisee.

Starting a new business can be a daunting prospect for anyone. And we, at Chrysalis Partners, believe it is often best to take the franchise route, rather than go it alone. Yet strangely, few people ever consider this option and many aren’t even aware that certain brands and companies are actually franchise businesses. The industry is rarely mentioned in conversation, so it’s not surprising that barely a few people even know what a franchise is. And even fewer are aware of its benefits.

So what is a franchise? In short, it is a business in which the franchisor sells the rights to use the company name, trademarks and business model, and all within a specified territory. The person or company which purchases these rights is called a franchisee, and they use the brand name, while operating the agreed business model. The franchisee usually signs either a five or seven year contract, but it can be longer. This agreement usually involves a fee being paid to the franchisor, as well as other ongoing payments.

In return, the franchisee takes a tried and trusted system, and doesn’t have to completely start from scratch. A well-known brand usually carries with it prestige, a significant profile and a good reputation. According to research carried out by the British Franchise Association (BFA), around half of all non-franchised start-ups fail within the first five years. This compares to just 1% of franchises over the same length of time. Such a stark statistic as this, clearly shows why franchising is usually a better option.

Franchised businesses enjoy the benefit of having an established brand, with proven business models and strategies, already in place. Therefore, it makes sense to tap into this experience and success. Taking on a franchise is usually the most cost-effective, secure and lucrative business option available today.

In the UK, franchising is an ever-growing industry which contributes over £17bn to the economy every year. Some 93% of franchises are profitable, while 60% of franchised units turn over more than £250,000 each financial year. Every franchisor will want their franchisees to succeed, just as much as the franchisees themselves. Franchisors usually provide intensive training to all new business partners who will receive ongoing support and assistance throughout the life of the agreement.

Franchisees will usually get the opportunity to talk to existing business partners who are normally more than happy to offer advice to new members of the network. A brand’s head office team, wherever based, is always readily available to be contacted, whether the franchisee requires advice, information or simply a quick morale-boosting chat.

One important benefit of setting up your own franchised business is that you have some flexibility over the hours you work and the lifestyle you wish to lead. However, you will still be required to work hard, and especially when starting out. Success is rarely achieved overnight.

However, despite the many advantages of becoming a franchisee, rather than an independent start-up, nothing is guaranteed in business. Many businesses have suffered greatly during the pandemic, although franchised companies in general have remained fairly robust and resilient compared to single stand-alone operations. Mind you, franchising is not for everyone, but hopefully this feature will have given you plenty of insight into this exciting form of business life.

This article comes courtesy of Chrysalis Partners. Our headquarters are in Horsham, Sussex, and we were named Best SME Business Coaching Franchise in the UK, at last year’s Corporate Vision Franchise Awards.

Chrysalis Partners: We are a network of successful business coaches who work with clients to grow and scale their business. We transform companies with our low or no cost strategies that have delivered success across many market sectors. Our franchisees (or coaches) are part of a growing network and our systems are constantly evolving and updated to meet the demands and trends of business. We hold monthly meetings and update our business partners with new material, and all free of charge. Training is ongoing. For more information about becoming one of our coaches, click here.

Strategic Media Partners