The majority of working people will have heard of the term ‘franchised business’. They will probably have a general idea of what this means: A business owner purchasing the right to sell products or services under the name of an established brand.
But many people may not be aware of what this entails, or what responsibilities come with using a well-known brand name.
Established brands have usually developed good reputations with their clients and/or customers, and will certainly want this position to remain unchanged. This article addresses everything to do with franchises, outlining the benefits of buying one.
Franchise business v Independent start-up
In theory, an independent start-up provides complete freedom, while a franchise business comes with certain responsibilities. However, a franchise business also offers the new purchaser a safety net, which isn’t usually available with an independent start-up.
A franchise agreement describes a blueprint for success. It operates by adopting a business model which has been tried and tested successfully over a number of years.
Reports from Experian PLC illustrate that around 50% of independent businesses fail within the first three years. This shows how tough it can be for new businesses to establish themselves, especially in competitive markets.
A franchise, however, provides a safety net. Although success can never be guaranteed, it does offer a greater opportunity for the business to flourish. In short, franchising thrives on collaboration, where franchisors work closely with franchisees.
In return for an agreed fee, the franchisor’s head office team provides training, ongoing support, as well as help to get the business off the ground, along with marketing guidance. It’s a comprehensive package.
One great advantage about a franchise business is that its name is usually already well-known. This reduces uncertainties surrounding market acceptance, which is of huge importance when it comes to attracting customers or clients on the first day of trading.
Brand recognition gives franchisees a solid foundation for success. This lessens the risk of failure, while maximising potential for long-term profitability.
But no such luck for owners of independent start-ups whose company names may not be familiar to the general public, making it much more difficult to build early trust. An established name, however, gives franchisees a significant advantage in the marketplace.
Thanks to many years of investment in marketing and brand development, a franchised business has usually built-up a considerable amount of customer trust. And new franchisees benefit from this established brand presence.
Providing they work hard and follow the franchise agreement to the letter, this will help new business partners to develop confidence with local customers, eventually leading to repeat business which is the ultimate aim of all companies.
No need for trial and error
Unlike an independent venture, which may require a trial and error approach while they develop an effective operational strategy, established brands have already been meticulously tested and optimised.
Proven franchise models encompass everything from standardised processes and procedures, to targeted marketing tactics and customer service protocols. Franchisees can by-pass the uncertainties of business experimentation, therefore focusing their efforts on executing an already successful formula.
On-going training and support
New franchisees gain access to a comprehensive support system from day one. Many brands have installed training platforms, allowing franchisees to access a wealth of resources and support material online.
Franchisees are usually assigned a dedicated regional support manager who provides ongoing assistance and guidance. These managers will also troubleshoot any challenges that may arise, such as optimising marketing strategies or navigating operational issues. Most brands employ teams to provide on-going support.
Marketing assistance
This is all about maximising your presence. A franchise business opening in a new territory has many great advantages over an independent start-up. Most well-known brands have systems already in place for showcasing franchise locations.
This will help to make the general public aware of any new businesses starting up in their region. Social media also plays its part. Franchisees receive all the necessary merchandise to enhance their operations, from branded apparel to promotional materials.
Initial fees and running costs
These vary depending on the brand. Some require significant investment, while others have low initial fees, as well as affordable on-going costs.
Many keep their fees low to encourage aspiring business owners to focus their resources on growing their operations. Some companies have standardised on-going fees, while others take a percentage of the profits.
Conclusion
Opening a franchise business in 2024 presents numerous advantages. From reduced risk and access to proven business models, to ongoing support and brand recognition, franchising offers a pathway to success with often low barriers of entry.
Franchising remains a viable option for realising business aspirations, thanks to the important role played by a brand’s support system. By exploring the franchise opportunities currently available in the UK, you will take your first step towards owning a successful business.
Join us at BabyBallers and explore the rewarding possibilities of becoming a part of the football franchise community, where passion meets profit and positive impact flourishes.
