The Issues and Strategies of Franchising a Brand

However, the process for turning a network into a franchise begins long before the first advertisements are placed for potential franchisees. The people who run the business, whether they are main board directors of a Plc, or are virtually a one-man band, must first gain a full comprehension of how to franchise, including its advantages and disadvantages, and its likely effect on their existing operation.

Only when fully armed with all the relevant information should a network make the decision to become a franchisor. This information includes hard elements, such as the financial aspects, and the softer, personal elements of the unique franchisor/franchisee relationship.

It is crucial to look very closely at the more personal elements because there is much more to building a successful franchise than the cold legal agreement and financial projections. Whilst advice on these matters from properly qualified experts is, of course, essential it must be considered in tandem with issues concerning human resources and personal development. Make no mistake, if a business becomes a franchisor, personal development is the name of the game.

Whatever it is you do now, whether you are a restaurateur, printer, carpet cleaner, car tuner, fashion retailer, or deliverer of parcels, your business enterprise will change when you become a franchisor. It will then be all about recruiting, training, monitoring and motivating people who want to run a network under your name, using your system and operated to your standards.

They will be expecting leadership and direction; guidance when they want to expand, or when they meet the inevitable problems; on-going training and marketing support; and the product or service development to keep their concept at the forefront of its marketplace. They will also expect you to create and maintain standards, both in your own firm and throughout the network.

As this is what you will have promised them when they were taking a look at joining you as a franchisee, you had better deliver it. Whatever happened, you may ask, to running a restaurant, printing, cleaning carpets, tuning cars, and so on?

If you are ready for this fundamental change, let us look at how we decide whether a company is franchiseable. We will investigate firstly the mechanics and then the cultural implications.

Five-star franchising

Just about any type of firm that operates as a branch network has been already franchised somewhere in the world.

In the U.S. for example, you can be born in a franchised maternity hospital, buy just about every product and service you will need in your lifetime from franchised outlets, then be seen off by a franchised undertaker, and finally buried in a franchised cemetery. However, not every network that has tried to franchise has been successful, and this is due to a number of reasons. To create a successful franchised network certain key elements need to be present. These are:-

A business with a clearly defined image and system of operation, both at branch and head office levels.

A brand with a proven and successful format suitable for franchising and with a product or service that has stood, or will stand, the test of time.

A network that is easily duplicated and easily learned

A business that generates enough profits to support both the franchisor and the network of franchisees.

A firm which has, or can adapt to, a culture of mutual respect and support, and in which it is clear who is responsible for what, and how often, and how well, they will perform their obligations.

Image and system

The clearly defined image and system are what we call the intellectual property. This includes the trade name, the method of operation and the way in which the various elements of the network come together to make up the franchise formula. None of the elements of the package need to be individually secret. What matters is the way that the franchisor has combined them to create a successful business enterprise system.

Naturally, the trade mark or name has to be owned by the franchisor as he is licensing others to use it, but do not worry if your name is not yet well known. That will not stop franchisees from joining you. After all, even McDonald’s and Marks & Spencer started with only a single outlet.

All the components of the package from the design and layout of the premises, through marketing campaigns, to accounting and administration will be detailed in the franchise manual, and it is the system in the manual that the franchisee agrees to operate.

Proven format

Pilot operations prove that the concept works and it is the evidence of their success that will convince your first franchisees that they should choose your franchise. Even if you have run company-owned branches for years, you must be aware that things will change when you franchise and you must be prepared to run pilot units at arm’s length.

This is just as vital if you currently have company-owned outlets which you are planning to convert to franchises and even if the franchisee is going to be the existing branch manager. Something different will happen when it becomes a franchise, so it is wise to find out what that is before you take the plunge.

Pilot units should, of course, mirror the proposed franchised outlet as far as possible in terms of size, location, catchment area, population profile, staffing and so on. It is no use doing brilliant network from a site in London’s Leicester Square and then expecting a franchisee to be equally as successful in the high street in Leicester. Ideally, you should pilot the concept in two or three places for at least one complete trading cycle.

Pilot operations help to prove that what you thought on paper will work in practice. If it does not, then you still have the chance to adapt it before offering it to franchisees. Pilot units also give you the opportunity to write the manual from practical experience instead of theory.

Easily duplicated

Depending on how many franchisees you need to properly service your potential market, you will not want to have too much difficulty finding premises, or people to join you as franchisees.

If there are a limited number of sites suitable for your network, or it needs particularly unusual conditions (say a constant supply of fresh spring water) then it will not be easy to duplicate in sufficient numbers to support a network. Similarly, if it calls for special skills which few people possess, say something particularly artistic or creative then franchisees will not be able to learn how to do it. Every rule has its exceptions, but mostly speaking the easier it is to duplicate and learn the brand, the easier it will be to franchise it.


The whole area of profits and fees is what we call structuring the franchise, and it is one in which you will need professional advice. Do not just look at a similar business enterprise and simply decided to charge the same franchise fees.

Whatever percentage they charge for their management services fee and advertising levy, or the size of the mark-up they charge on supplies, will probably not be appropriate for you, and it may not even be right for them either.

A franchising feasibility study has to evaluate many things. Having sorted out whether the business is proven, and easily duplicated and easily learned, it is then necessary to look at the structure. How big is the market? How much business enterprise can the proposed size of outlet handle? Consequently, how many franchisees will we need?

Having decided the number, what support staff and structure will you need to recruit and support a network of that size? Can the concept make enough to satisfy the franchisee, and give the franchisor a profit?

These and many other concerns are best discussed with someone who has franchising experience as it is easy to overlook fundamental items when you have not had experience as a franchisor.

Naturally, it is sensible to work out the franchisee’s finances first. After all, if it does not work for the franchisee, it will never work for the franchisor. If things look good for the franchisee, then go on to work out your finances as a franchisor. Ideally, you should prepare a three-year profit-and-loss and cash-flow forecasts for both your franchisees and yourself. These can later be used as the basis for brand plans, both for raising finance and the on-going monitoring of the firm.

It is crucial to get the structure right. This may seem obvious, but if one or other of the parties sees the other making all the money or, indeed, if neither of them is making enough, the relationship will come to an end.

The concept, therefore, has to generate enough profit for the franchisee to make a decent living and pay back whatever he borrowed to start the brand, and also make some more on top to re-invest in future improvements. Finally, the network must contribute enough to the franchisor for him to do the same, and in addition provide on-going support to all his franchisees.

So if your company has a low margin it is likely to be tricky to franchise successfully. It also really goes without saying that if your existing concept is not making sufficient profits, franchising will not offer a way out of the problem. In such a situation, you must first put right whatever is wrong and then use franchising to build on your new success.

Franchising culture

None of the above will work if you do not get the relationship right and create a network based upon mutual trust, respect and support. To support franchisees, it is essential that franchisors and their support staff understand the unique relationship between the franchisor and franchisee.

Like all relationships, both parties in franchising have different motivations for becoming involved, and there are advantages and disadvantages on both sides.

For the franchisor, the advantages have mostly to do with using other people’s money to expand the network quicker than would otherwise be possible, whilst having less involvement in the day-to-hassle of running branches. The disadvantages are having to accept that the bulk of the profits from the branches will go to the franchisees, and learning how to deal effectively with people who are using your name and system, but who own their own businesses.

Some research says that it is a relationship which is becoming increasingly attractive to many businesses as proved by the fact that more franchisors come to the market every year. However, other research says that as many as two-thirds of franchisors drop out within the first 10 years.

There may be any number of reasons for firms dropping out, and they are not all due to failure or disappointment with the system, but it is likely that many of those who did withdraw did so because they had failed to understand the principles of good franchising practice before they started and were subsequently unable, or unwilling, to get to grips with the all-important question of the franchisor/ franchisee relationship.

As in many relationships, the major cause of failure is often due to the failure to communicate. It is the franchisor’s job to communicate what the network is trying to achieve; how it will be done; who is responsible for what; and by when it should be done. He should set an example by his own actions, and motivate and encourage franchisees to play their part in making the system successful. Not many networks fail because of the franchisees.

Assuming the franchisor has properly piloted and proven his system, he then needs to understand the motivation of franchisees for choosing this particular form of self-employment. Research tells us that at the top of the list comes reduced risk, marketing and training support, the fulfilment of a long-term desire to have their own business enterprise, and trading under an established name. At fifth place is the level of prospective income.

If you have recruited your franchisees, or sold your franchise, on the strength of the support you will provide, that support had better be there and it had better be good.

The initial step in the direction of mutual understanding is for each party to accept their individual and joint obligations.

Broadly speaking, the franchisor is responsible for marketing and developing the network and its products or services; assisting the franchisee to be profitable; and creating and maintaining standards. The franchisee is responsible for upholding the good name of the franchisor; operating in accordance with the agreement and manual; and maintaining and improving standards. Jointly, the responsibility of both parties is to build a network with a defined image and standards, under a recognised brand name.

Franchisees must be made to recognize from the outset that they are being allowed the opportunity to operate a proven network system, using an established name. They are not opening a business in which they are free to do their own thing. The position of franchisees is, in fact, unique in the field of commercial relationships.

Franchisees are not employees, although they work to instructions and will hopefully have been recruited with as much, if not more, care. They are not customers, although they will have been, and continue to be, sold products or services. They are not, whatever the PR message may say, partners. Not legally, anyway.

They are, in fact, people who have trusted the promises made by the franchisor and his staff to the extent that they are prepared to devote probably their entire financial assets and most of the waking life to the pursuit of the promised opportunity. In return, as we have seen, they expect to receive the support that they have been promised in terms of marketing assistance, training, network planning, product development, and general network advice.

The franchisor’s support staff must realise that their role is to deliver what the franchise sales staff have promised. The recruiters for their part must be careful not to promise more than the franchisor is capable of delivering.

Becoming a franchisor

Franchising is about supporting franchisees in order that they can operate a proven system, and that support must be available to the very first franchisee who joins the network. It may not then be necessary to add to the initial support staff until there are 15 – 20 franchisees, but they all need to be there at the start. If the early franchisees are not supported, they will not succeed and it will then become increasingly difficult to sign up others.

Similarly, the operations manual and legal agreement must also be in place at the start, as must the systems for monitoring and managing the performance of franchisees. Franchising, therefore, requires considerable up-front investment by the franchisor before there is any income stream.

Agreement and manual

The agreement and manual are the documents which lay down the ground rules which govern the relationship. They are linked together through clauses in the agreement, and both need to be professionally prepared by recognised franchising experts.

There is a substantial cost to be met in preparing these documents, but over the life of the network this will appear negligible, and will usually be amortised from the fees of the first few franchisees. Both documents must be properly prepared. Cutting costs here will create problems down the line which will prove far more expensive than taking proper advice at the beginning.

Support staff

Having agreed that franchising has its particular skills, the staff involved in the franchise operation should either have, or quickly acquire, those skills. Basically there are two choices, either recruit experienced franchise managers from outside, or have your own staff trained in franchise management.

Formal training is readily available from the Franchise Training Centre via a series of modules covering marketing the franchise, recruiting franchisees, monitoring franchisee performance and motivating franchisees. Delegates who complete all modules can choose to go on to prepare a dissertation showing how what has been learned has been successfully transferred to the workplace. That results in the award of the diploma in franchise management, which in turn has been accredited by Middlesex University and provides academic credits towards an MA work based learning studies (franchising). Details are available at

Prospective franchisees may soon be asking for proof of such qualifications being held by the staff of the franchisor they are planning to join, and perhaps choosing to go with a different network which has more evidence of such a professional process.

Whether there is just one manager doing it all, or a separate one for each of the support functions, staff need to be proficient at recruiting, training, monitoring and motivating franchisees, with all the technology, knowledge and inter-personal skills called for by such responsibilities.

Recruiting franchisees

A franchisor has two marketing responsibilities – one for continuing to market the product or service; the other for marketing the brand opportunity and recruiting franchisees. These are not the same, and require different approaches. Presumably, if he has established the concept, the franchisor already knows how to market his product or service.

The feasibility study and franchise plan will have established how many franchisees are needed and where they should be located. The manual will make it clear what is required of the franchisee in terms of duties, responsibilities, knowledge, skills and attitude.

The franchise marketing plan brings the two together, and the franchisor needs to choose people, or perhaps companies, who fit a pre-determined profile and have the ability to succeed. It usually proves disastrous to simply appoint anyone who has the money to buy the franchise and to locate them wherever there is a blank space on the map.

There are any number of ways of reaching potential franchisees, but no way that is right for every franchisor. Having established a clear idea of what a prospective franchisee looks like, it becomes easier to decide where to look for them.

Professional advice will help to ensure that the concept is properly targeted, leads are handled effectively, and procedures are implemented to accept or reject applicants. The skills required by franchisee recruitment personnel include marketing, selling, business awareness, negotiation, and legal and financial understanding.

Concept plans

Subject to the usual lending criteria, all the banks are keen to lend to franchisees of a properly-structured and proven franchise. Most franchisors present their opportunity to the franchise sections of the banks to clear the way for later applications by their prospects.

Naturally, the franchisee needs his own firm plan, based on the experiences of other franchisees in the system and franchisors, or their approved third parties, can help with the preparation of these plans.

Agreeing company plans (both action plans and financial projections) with franchisees allows more sensible discussion of progress once the outlet is up and running, and most franchisors will insist on franchisees using a particular system of accounting. This can even be overseen by a professional adviser who monitors the performance of the entire network, rather than leaving it to in-house staff.

Once agreement to go ahead has been reached, the franchisor will commence his set-up and support procedure. This will differ in accordance with the type of business and may include help with locating and acquiring a suitable site; converting and equipping premises or vehicles; preparing a marketing launch package; and providing initial stock.

Whatever the business enterprise, it will include training for the franchisee, and probably his staff, in every aspect of the concept. This may be carried out either in classroom style, or hands-on at an existing unit, or in a mixture of the two.

Training is the very essence of franchising. It is how the franchisor passes on the proven format which he has developed and in which the franchisee has decided to invest. Having successfully completed initial training, franchisees should be able, or indeed required, to attend further training on a continuous basis.

On-going support

Franchisees expect and are entitled to continuing support in operating their network, whether this be concerned with new products or systems of operation, training, assistance with company development, encouragement during times of difficulty, and help in finding a purchaser for their concept if they want to move on.

The franchisor must learn how to both motivate and monitor franchises – motivate to encourage them to do better, monitor them to ensure that they are maintaining standards, both for their own good and that of the network as a whole. There are numerous techniques to achieve these aims, and professional advisers can explain how to implement them.


A brand can probably be franchised successfully if it is proven and successful in an established format; capable of being easily duplicated and easily learned; likely to be profitable for both franchisor and franchisees; and the management is prepared to accept considerable operational and cultural changes.

Franchising in the UK has come of age, and there is now a wealth of professional guidance available to prospective franchisors. If you are thinking “Should I franchise my business”, to not take advantage of such advice may turn out to be not just remiss, but fatal to the businesses of the franchisor and his franchisees.

If it is operated properly, franchising is a superb way of building a network in which everybody wins – the franchisor, the franchisees, and through the franchisees’ personal commitment to the success of their local outlets, the customers.

Points To Consider Before Business Franchising

Business expansion… It’s like the icing on every entrepreneur’s cake. It seems to be the ultimate business opportunity for anyone who has worked hard and invested a lot. What better way is there to expand your business than through franchising your own business franchise? Truly, this is a promising move when done correctly. However, business franchises which lack proper research, statistical back up and others can prove to be a total disaster.

Setting up business franchises should always be backed up by thorough researches that have been methodically completed. All concerns regarding the establishment of business franchises should always be based on studies which assess the performance of the original branch of the franchise. This will be the main determinant of how weak or strong how strong the foundation of a business franchise really is.

First, consider the marketability of the original products and services of the business before putting it up for franchising opportunities. To assess this accurately, make sure to evaluate the business’ performance in relation to the current environment. Some useful determinants of environmental variables are socio economic conditions, local natural conditions and others. To further make use of your accumulated demographics, also start testing if these variables are the same with that of the prospected areas where you want to set up your business franchises. Remember that the success of a business in one place doesn’t necessarily guarantee the success of failure of its business franchise somewhere else, unless statistics say so.

Second, you must make sure that you have ample resources and capital that can keep the business franchise running, while taking care of your mother branch. The capital you must readily have should cover expenses for supplies and other expenditures which need to be settled in order to make you business franchises work. Most of the time, it is better to start off with money you already have, instead of loaning too much. If you can’t afford it, don’t expand. That’s a hard and simple rule for wise business franchise development.

Lastly, always consult a trusted and experienced franchising consultant before doing anything rash. Their piece of advice will be very handy in safeguarding the welfare of your business. With the help of reliable franchise specialists, all the blind spots of your pending business franchises will be revealed. Such information will be very useful, especially if you’re new to the world of business franchising.

Always consider these before pushing through with business franchise opportunities. Although these may sound too complicated, they will lead you to more prudent decisions when it comes to expanding your business through franchising opportunities. In the end, you will see that these are crucial aspects of business franchise development that you would never want to miss.

Growth of Franchising in India

Franchising in India is growing at a faster rate in recent years and people find it more lucrative and booming. India is one of the countries that offer better prospects of various franchising and other business models. More franchising and business opportunities have popped up with the incoming of foreign corporate and institutional investors.

Being geographically vast and culturally diverse, India offers favorable franchising environment. While companies benefit by having many profit making outlets in different parts of the country, franchisees in India benefit by being able to generate good ROI with lesser risk.

Entrepreneurs are entering India’s franchising market in larger numbers. There are numerous attractive franchise options available under various sectors. Now, Indian franchisees can select from a vast number of international and domestic franchise brand names.

For foreign direct investment, currently India is comfortably positioned among the top four Asian destinations. It is oblivious from this fact that, more and more foreign companies will be coming soon and setting up their base in India. This means more lucrative franchise and business opportunities in India. The cost of hiring an employee in India is much lower than the European Union (EU) nations and USA. This is one of the major reasons, why so much work is outsourced to India and many companies are setting up their back end operations offices over here.

Franchising in India has also flourished because of the huge consumer market base that spreads across the urban population who are successful, prosperous, and thriving monetarily on this economic boom. That’s why lot of foreign players are attracted to the Indian market. For both the franchisors and franchisees, franchising in India has emerged as a profitable option. The franchisees benefit from an established brand that ensures assured income while the franchisors benefit with the vast consumer market.

India is fast emerging as a favorite destination for global franchisors, according to recent studies. In spite of the stringent licensing regime, foreign investors are coming to India because they know the pain is worth taking. Once, they get their foothold in the Indian market then they can touch the sky. A number of established brand in India are gaining name and fame from franchising and the world is benefiting from the liberalized Indian economy. The franchise option includes educational institutes, retail businesses, telecom companies and many others apart from food business.

Each and every brand and company has its own franchising concept and they are growing at a remarkable speed and you can say that there is tremendous scope in coming time for each sector. Furthermore, there are various sectors which are still untouched and hold much potential. Nowadays you can witness drastic changes taking place in sectors such as pharmaceutical industry, real estate, aviation industry, telecommunication, infrastructure, or even finance market. Thus, we can say franchising in India will be interesting prospects for all the big and small corporate houses, native or foreign, that wants to convert their traditional business into a franchise business model.

About Author :

Sparkleminds consists of franchise consultants with unparalleled proficiency in business development. The business consultancy outlines the way your business will work within your franchise system. It gives you, the franchisee, and your franchisor a clear perceptive of the terms of your business relationship.

Franchising Vs. Licensing A Business


What’s the difference between franchising vs. licensing a business? Is a license business model really different from a franchise business model? Whether you’re a franchise attorney or not, the starting point in any analysis is to consider the legal aspects, then the business aspects. This article focuses on the legal aspects. A franchise always includes a license of the brand and operating methods, along with assistance (training, an operations manual, etc.) or support (providing advice, quality control, inspections, etc.). A license that is supposedly “not a franchise” but contains these elements, is a disguised, illegal franchise with significant legal ramifications and risk.


In considering the legal aspects, begin with the following premise that applies to both options:
If you put someone into business (or allow them to use your business brand/mark) this transaction will normally be a regulated activity, subject to substantial penalties for noncompliance. If it looks like a duck and walks like a duck, it’s a duck. This guiding legal principle (and common sense), coupled with the business aspects of selling a franchise vs. a license (discussed below) will answer most questions.


Why does regulation exist? Arising from the ashes of documented past abuses, where tens of thousands of individuals lost all of their worth by investing in nonexistent or worthless business endeavors, the government has devised two principal consumer protection mechanisms:

(1) franchise disclosure-registration laws; and
(2) business opportunity laws.

The thrust of these laws is to require sellers to give potential buyers enough pre-sale information so informed investment decisions can be made before money changes hands, contracts are signed and sizable financial commitments are undertaken. It doesn’t matter what terms are used by the parties in contracts or other documents to describe their relationship. For example, the contract may call the relationship a license, a distributorship, a joint venture, a dealership, independent contractors, consulting, etc., or the parties may form a limited partnership or a corporation. This is entirely irrelevant in the eyes of governmental regulators,. Their focus is not on semantics, but whether a small number of defining elements are present or not. Today sellers are subject to a complex web of regulations that differ from the federal level to the state level and even differ widely from state to state. Murphy advises through Franchise my business.


The internet is filled with statements like “Compare high cost franchising to low cost licensing.” Firms or individuals that say calling it a “license” dispenses with legal regulations are delusional and wrong for at least three reasons:

(1) Common Sense – if it was really that easy, everyone would be doing it that way. The 3,000-plus companies that are franchising are not stupid. Many can afford the very best legal talent available. It’s not a coincidence they’re all franchising and not licensing;

(2) Even if the relationship can be structured so it doesn’t fall within the definition of a “franchise,” the backup regulatory protection mechanism – business opportunity laws (discussed below) – will certainly apply. And complying with these is a lot more expensive than going the franchise route; and

(3) Any analysis must include federal law (franchise and business opportunity) as well as applicable state laws covering the same dual prongs (franchise and business opportunity).

This all reminds me of some financial planners who still advise their U.S. clients that filing U.S. income tax returns is not required under their interpretation of the U.S. Constitution. It just doesn’t work that way. Actually it does work, but only until the IRS catches up.

The “licensing avoids franchise regulations” spin (which, not surprisingly, is not accepted in the legal community) also only works until the company gets caught. The logic (not) goes something like this: licensing arises under contract law, not franchise law and therefore franchise law doesn’t apply. Sound’s just like the “you don’t have to file a tax return because tax laws don’t apply” argument.


A license attorney prepared a dealer license agreement and ignored the FTC Franchise Rule disclosure requirements (“licensing arises under contract law, not franchise law”). The dealers became disgruntled and hired a litigation attorney who sued the company for, not surprisingly, selling disguised illegal franchises. It cost the company $750,000 to go to trial in federal court to answer the question “Is our license contract an illegal franchise?”

“Is our license really a disguised, illegal franchise?” is always a very expensive question to answer. Unless spending $750,000 is your idea of a good investment. Trying an end run around the franchise disclosure laws by calling it a “license” or a “dealership” may be a cheaper way to go initially. But it’s only a question of when (not if) you will be caught. Be prepared to spend mind-boggling amounts down the road when the disguised illegal franchise is challenged for what it really is.

In a 2008 case, Otto Dental Supply, Inc. v. Kerr Corp., 2008 WL 410630 (E.D. Ark. 2/13/08) another disguised franchise vs. a license was at issue. The company claimed it sold just a license, not a franchise and the franchise laws simply didn’t apply. It made a motion for summary judgment to have the case thrown out of court.

The federal Eastern District Court ruled against the company and ordered the case forward. It said whether or not the license was really a franchise was up to a jury to decide. Jurors are like most of us, and apply common sense to the simple defining elements of a franchise. They are not swayed by semantic arguments like “licensing arises under contract law, not franchise law and therefore franchise law doesn’t apply.” Another very expensive franchise vs. license learning lesson.

And here’s a final example. In Current Technology Concepts Inc. v. Irie Enterprises Inc. the Minnesota Supreme Court concluded a licensing arrangement was a franchise and held the franchise company liable for damages in the amount of $1.3 million for violating the Minnesota Franchise Law.

Hearing “after the fact” that the arrangement was an accidental, illegal franchise and you’re liable for $1.3 million was the last thing that company ever wanted to hear. Perhaps they got themselves into this mess by listening to statements found on the internet that franchising is expensive and licensing inexpensive. Again, if something sound’s too good to be true, it usually is and this should be a big flashing red light.


It is important to remember the roots of licensing: artwork and character licensing – where the owner (licensor) grants permission to copy and distribute copyrighted works, such as allowing Mickey Mouse to appear on t-shirts and coffee mugs.

The most recent explosion in license law is the licensing of software on personal computers. Or, the owner of a trademark allows another a license to use its mark as a way of settling a trademark infringement suit. These are common and accepted forms of licensing. However, the attempt to use licensing as an end-run around the franchise laws is a corrupted use licensing was never intended for.

This is not to say licensing a business may be a viable option in foreign (out of U.S.) transactions where U.S. laws don’t apply – but these are a very small minority. Most transactions and contracts cover U.S. activities and residents, so the franchise vs. license question is usually an easy one to answer.

Enjoy franchising business opportunities and be your own boss

All those with the zeal to be their own boss always get different ways to lead, one is through franchising with a good brand, second is business for sale and the other is establishing a whole new business. However, all of them require big amount of investment in the initial stage. But only franchise comes up with fast recovery along with good market reputation. You will get several business opportunities related to franchising. However, there are always chances of getting failure in establishing a new business. Therefore, if you have been looking forward to own a business of your own, always give preference of franchise. There are various benefits that come along with franchising.

Below mentioned are the top 3 benefits of franchising rather than establishing a new business:

Complete support:

Franchising with a good brand allows you to lead a company along with full support from the parent company side. The in-build support team of the company is always there to support you in all your tasks and decisions. After getting franchise there is no need to hire a different support team as they are already there to help you in accomplishing all your endeavors. In case you come across any problem with the product then they are always there to handle the entire situation quite efficiently. The support team is always there to guide you in your entire business front. As you have entered the franchise business recently therefore, you will require help to understand every perspective. This is where the support team comes into the picture and assists you in leading ahead the company. After attaining UK franchiseyou may enjoy doing business with a relief of support from the team.

Established market reputation and brand value:

Franchising with an established business lets you enjoy its well-known market reputation along with strong market value. You actually attain a readymade recognized brand with rich clientele and consumer base. Customers recognize the brand therefore end up preferring it which further results in enhanced profits. As the brand is in the market for the past many years and have earned their respect and assurance enables you to gather more respect. You will always be recognized with the parent company’s logo, clients, uniform and products which will further let to earn more money and respect as well.

Pre-planned business strategies:

After franchising with a reputed brand there is no need to develop any strategy or business plan as you get per-planned company strategy. You don’t have to hire any marketing experts and advisers to establish any business marketing plan. All you have to do is simply follow the strategies and guidelines which are already there for you. The parent company already boasts its clients and consumers to whom you have to manage and serve quality products.

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