What is Franchise ?

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Franchising is a growing industry across the globe. And with the benefits it brings, it is clear to see why more and more people are deciding to start their own business as part of a franchise, rather than go it alone.

Franchising offers entrepreneurs the support, systems, experience, training, mentorship and proven business model of an existing successful business. These elements contribute greatly towards the overall success of franchises compared to new start ups.

it is very much your own business. And while the franchisor will have certain criteria to be adhered to in order to protect their brand identity and to keep the franchise model as successful as possible, the business, running of it and it’s achievements are your own.

There are so many different statistics flying around on this one and a cause of much debate as to the exact figures, but whichever pools of data you chose to believe each one clearly shows franchises succeed over start-ups hands down.

Start-up failure rates are quoted in many sources between 75% – 90% with most quoting a 3 year failure rate of 80%, while franchise success rates are quoted anywhere between 67% and 92% with the most reliable source, the bfa, showing data that over 92% of franchises are profitable.

From the initial tools, sales packs, materials, website, marketing and office functions, you will see the cost effectiveness of a franchise. When looking at the breakdown of your franchise fees take into account the savings you are making over and above that which you would spend if you started alone.

Ongoing you will also find that group purchasing, marketing, advertising and office functions will save your businesses hugely over independent business start-ups.

On top of these tangible cost savings, the brand building, reputation, bespoke systems and proven business model bring huge value to your franchise.

We believe these franchise facts speak for themselves. But don’t just take our word for it! The latest UK franchising industry stats taken from NatWest/bfa Franchise Survey  shows some incredible data

Last year sets a record year for franchising

In just one year the overall UK franchise industry turned over £15.1 billion

The UK franchising industry has seen an overall 46% increase over the past 10 years

The average turnover per franchise continues to increase. With over 50% of all UK based franchises annual turnover rising above £250,000.

Franchising has played an immense role in the creation of the American dream. Franchises are everywhere, but here are 10 fascinating facts about the franchise industry that you may not have known.

The number of franchise establishments currently in the United States is approximately 750,000. All of these businesses directly employ well over 8 million people combined, with Quick Service Restaurants (QSR) and Table/Full Service Restaurants accounting for approximately 50% of all jobs in the franchising industry.

Albert Singer is widely considered the father of modern-day franchise model, particularly in the United States. Singer is credited with being the first to develop a franchise contract in the mid-1800s in order to help him distribute his sewing machines across the country.

Dave Thomas, founder of Wendy’s, learned the franchise restaurant business under Colonel Harlan Sanders of KFC while working at locations in Fort Wayne, Indiana. Thomas would later earn the money to open up Wendy’s by way of profits from an ownership stake given to him by Sanders for turning around underperforming KFC locations in Columbus, Ohio.

The franchise industry has expanded exponentially throughout the years. In 2015 alone, over 780,000 franchise establishments were located in the United States. Most information regarding the market requires minimal effort to find. However, some franchise facts aren’t common knowledge to the public.

There are over 250,000 possible ways to order a burger at Five Guys. The “Five Guys” behind the burger chain are actually five brothers from Alexandria, Virginia who founded the restaurant, originally a carry-out only burger joint, in 1986.

With large companies, most people expect a franchise business to have a big corporate team as well. However, this is not always the case. A majority of franchises possess a small, intimate team for the corporate office. Each location hires their own staff for their business, which allows a tight-knit, cohesive group to run the main HQ.

Pinkberry rotates its flavor offerings several times a year. However, there is one flavor that is always regardless of the time of year – the frozen yogurt shop’s “Original.” Pinkberry also offers more than 30 toppings for its yogurt to customers.

AlphaGraphics became the first desktop publishing retailer in 1984. Throughout the years, the company’s business center offerings have evolved to include printing, marketing communications as well as document creation and management.

Despite what most people think, franchisors choose their potential franchisees carefully. New locations don’t pop up every few days or weeks. Most businesses are looking for a specific type of person that fits their brand. Ensuring they select the right franchise owners takes time, and no company rushes into a decision.

The original Gold’s Gym in Venice, California is nicknamed “The Mecca” (of bodybuilding). Gold's Gym is the largest global co-ed gym in the world with members that range from novice to professional, including Hollywood stars.