Franchising offers a range of options to choose from
By: Deborah Bates
31 December 2010
The number of people set to invest in franchises in 2011 is expected to rise, after the last year saw UK franchising add £11.4 billion to the British economy, reports FranchiseInfo.
The types of franchises people are considering is also growing, with FranchiseAdvice reporting on around eight different routes available for the British public, including retail and B2B franchises.
Retail franchises are generally set up in high street premises, and turnover mostly consists of walk-in custom. Examples of industries in which they could operate include food, clothing, telecoms or printing, and the business is typically ruled by an owner-operator. Printing is also a key industry for B2B franchises, which see the owner managing the selling. They will visit clients and undertake negotiations, leaving the staff within the premises responsible for the day-to-day duties.
Investment franchises lie at the opposite end of the scale, where the franchisee will typically keep operations at arm's length, using professionals to run the business; a common option within the hospitality sector. Those wishing to take a hands-on approach could consider a management franchise, where the owner manages their staff and develops the business, typically driving turnover via B2B activities.
For people not wishing to take on staff, a sales and distribution franchise would be ideal. In this instance the franchisee operates on their own, travelling to sell products. Also, a single operator franchise could be an option, where the franchisee will operate small premises or a mobile office. Generally these franchises involve supplying, selling and delivering products.
Those with a little more experience could consider an executive franchise, which sees the franchisee offering consultancy services (most commonly of the project, change or financial management areas) from their home. Additionally, individuals with strong business skills should look at gaining a master franchise license, which allows them to manage franchises across a larger region, or even a whole country.
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