Business franchises have been around since the 19th century although it was not until the 1950’s that franchising begun to gain widespread popularity. Although each franchise agreement will differ in some way the majority of franchises have the same common features. In a business format franchise the franchising company known as the franchisor sells a part of their business to a buyer known as a franchisee. As part of the franchise agreement the franchisor may simply be granted the right to use a brand name or to sell a certain product or in many cases they are given access to the entire operating blueprints of the franchising company. For this the franchisor will pay an initial franchise fee and usually a regular share of any future profits.
The last ten years in the UK has seen a large increase in the popularity of franchising. Over the last decade the franchising industry has shown consistent growth and has become a significant part of the British economy. The most recent statistics estimate the economic contribution of franchises to have reached £12.4 billion. This is in comparison to a figure of £7 billion in the previous year. The number of franchise units also increased and now stands at 34,200.
There are a number of reasons why franchising should have increased in popularity. Franchising offers several advantages over other types of business opportunities. By investing in a franchise franchisees are gaining access to a proven business model with an established brand, product and customer base. For this reason buying a franchise can be a much more secure route to beginning a new business. A further common feature of franchises is the provision of training and support to franchisees. This support can make franchising ideal for people who would like to manage their own business but have no previous experience of doing so.
wok2go is a Chinese & Thai restaurant franchise opportunity in the UK. Visit our website if you are looking to buy a UK franchise.
