Franchise Owner
The Work
A franchise is an arrangement between an established company (the franchiser) and a
local operator (the franchise owner, often known as a 'franchisee'). As a franchisee, you
would be self-employed and own the business, but you would benefit from your products
or services already being familiar to the public.
Many types of business are run as franchises, in particular:
convenience stores
food take-aways
printing
professional cleaning services
hairdressers
parcel delivery
estate agents
recruitment consultancies.
You would pay an initial fee to use the franchise brand and products, and then pay the
franchiser a regular management service fee based on a percentage of your turnover. In
return, the franchising company would provide you with training, guidelines for running
and advertising the business, and any stock, equipment and shop fittings that you might
need.
Entry Requirements
You don't need formal qualifications to run most franchises, but you would be at an
advantage with some business skills in areas like people management and basic
accounting.
You often do not need any direct experience of the business that you are running (as
training is provided), but previous work experience in sales, management and customer
service would be useful.
You will need enough money to buy the franchise and pay the franchiser's fees. Few
franchises are available for less than £5,000, and the average start-up cost is between
£20,000 and £50,000.
If you are thinking of running a franchise and would like some advice, you could contact
the British Franchise Association, which runs seminars, provides information and
approves franchising companies.
Before you buy a franchise, you may find it useful to take a short business start-up course
run by a local college, adult education centre or enterprise organisation. You can also get
business start-up advice and training from the Business Link network (in England), Invest
Northern Ireland, Business Support Wales or Scottish Enterprise.
Hours
Your hours would depend on the type of franchise you ran, but you are likely to need to
put in long hours to make your business succeed.
Your working environment would also vary according to the type of franchise - you could
be running a high street shop, travelling to customers in a mobile business van, or working
from home.
Skills and Knowledge
motivation and determination
good business sense
excellent organisational skills
willingness to follow the franchise company's rules and guidelines
an understanding of budgets and accounts
the confidence to market and promote your own business
good communication skills
the stamina to cope with working long hours
the ability to manage and motivate employees.
Training and Development
All franchising companies will offer you some initial training. Some franchisers will also
train your employees and provide ongoing training as part of the franchise agreement.
Training is likely to include:operating the business to the required standard
sales skills
product knowledge, pricing and marketing
finance, administration and customer relations.
You could choose to work towards qualifications aimed at people running their own
business, such as:
NVQ Level 3 in Starting a New Business Enterprise
NVQ Level 4 in Developing an Established Business Enterprise.
You can also get ongoing business development support and advice from organisations
like the Business Link network.
More Information
British Franchise Association
A2 Danebrook Court
Oxford Office Village
Langford Lane
Oxford
OX5 1LQ
Tel: 01865 379892
www.thebfa.org
Franchise Development Services Ltd
Franchise House
56 Surrey Street
Norwich
NR1 3FD
Tel: 01603 620301
www.fdsfranchise.com
Business Link
Tel: 0845 600 9006
www.businesslink.gov.uk
Invest Northern Ireland
Tel: 028 9023 9090
www.investni.com
Business Support Wales
Tel: 08457 969798
http://fs4b.wales.gov.uk
Scottish Enterprise
Tel: 0845 607 8787
www.scottish-enterprise.com
Opportunities
Over 700 franchise systems are operating in the UK, including many well-known
businesses.
You can find information about available franchises from Franchise Development
Services, from franchise exhibitions andThe Franchise Magazine.
The Franchise Magazine
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Income
Your profits (and therefore your income) will depend on the type and size of franchise, and
how much effort you put into making the business work.
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