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Franchising Frequently Asked Questions
Franchising is a process in which a person agrees to pay for the business, marketing and operations strategies of an existing business. The arrangement allows the buyer use of the brand name and grants them rights to sell the company’s products. In return the selling company receives an initial fee along with a regular share of the profits.
What types of franchise are there?
The most basic form of franchise is product/trade name franchising. In this agreement the franchisor simply sells the rights to use of a particular brand/trade name. A more complex form of franchising is business format franchising. This type of agreement usually has a broader relationship between the two parties that includes on-going training and support.
What are the advantages of franchising?
Franchising works because it can offer potential advantages to both the buyer and the seller of the franchise. For the seller of the franchise allowing their brand and business strategies to be sold can be a quicker route to expanding their business while at the same time removing some of the day to day work that would otherwise be need to run each location. The buyer of the franchise on the other hand benefits from the use of an established brand with an existing client base and so some of the risks usually associated with starting a new business are reduced.
What factors should be considered when buying a franchise?
If you are considering which franchise to buy then there are several factors that should be taken into account -
- Levels of demand for the franchises products and services
- The amount of competition
- How much support and training you will receive
- The potential for growth of the franchise
I’m interested in finding out more, what is the next step?
If you are interested in finding out more about the wok2go franchise simply fill in our enquiry form. By doing this we will contact you to further discuss the benefits of choosing to buy our franchise. Our discussions will be informal and will not place you under any obligation.
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Recent news posts
Franchise Investment Prospects for 2009
Good news for anyone considering investing in a business franchise in 2009. Despite the UK’s current economic problems the prospects for obtaining funding for franchise investments still appear to be positive.
Franchising Showing Continued Success
Despite uncertainties and reports of a slowdown in the nation’s economy franchising in the UK has been shown to be going from strength to strength.
British Public Choose Franchises
Research has indicated that a majority of people in the UK prefer to buy goods and services from franchised businesses.
When questioned a significant percentage of individuals stated that if given a choice between buying from a franchise or from a non-franchise business they would choose to buy the franchised brand.
UK Entrepreneurs Show Support for Franchising
The results of a latest survey have shown that UK entrepreneurs are increasingly opting for franchising when looking for new business opportunities.
In the last ten years the franchising industry has shown consistent growth and is now undoubtedly a significant part of the UK economy. In the last year the estimated economic contribution of franchises increased from £7 billion to £12.4 billion.
Power of Branding Benefits UK Franchisees
A recent survey carried out by NatWest has revealed that for a significant percentage of franchisees a major reason for buying a franchise is the advantage of being part of a ‘well known and established brand’.
The results should come as no surprise as it has long been established that business franchising has many brand related benefits. These advantages are commonly shared between franchise owners and franchisees.
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