# BWSMAGAZINE
WHY FRANCHISING COULD BE YOUR PERFECT ROUTE TO SELF EMPLOYMENT
For women thinking of starting their own business the traditional routes to self-employment can be risky and fraught with difficulties . You have to have an idea for a business , how are you going to finance it , how are you going to market it , how will you get customers and so forth .
More and more women are therefore considering franchising as a better route to self-employment . What is franchising ? Basically a franchise is an arrangement where one party ( the franchisor ) grants another party ( the franchisee ) the right to use its trademark or trade name as well as certain business systems and processes , to produce and market a product or service in accordance with a proven franchise system . The franchisee usually pays a one-time initial franchise fee in return for initial training and launch support plus a percentage of sales revenue as an on-going royalty for continued business growth support .
The key thing about investing in a franchise is that the business model has been proven to be successful , profitable and sustainable . The franchisor has made all the mistakes so you don ’ t have to . In most cases you do not have to have experience in the field the franchisor operates in as the franchisor will give you full training in their operations as part of the franchise investment .
So what does a franchise cost ? Depending on the sector the cost can range from under £ 10,000 in sectors such as children ’ s activities , £ 25,000 plus for management and vehicle based franchises to £ 200,000 plus in the fast food sector . You will require sufficient additional working capital to invest in the required premises fit out , equipment and vehicles depending on the business sector and will require the additional working capital to cover your business operating costs for at least the first 12 months . Obviously the greater the investment the greater your rewards should be . The good news is that banks are very willing to lend to franchisees as they view the sector as less risky . Depending on the usual credit check and status banks can lend up to 75 % of the franchise fee . Most of the high street banks have specialist franchise divisions which should be your first port of call when looking for funding .
We are all familiar with the large , well know franchise brands such as McDonalds , Dominos and Subway but franchises come in all shapes and sizes and at all levels of budget . According to the British Franchise Association there are currently around 900 separate franchise brands operating in the UK . They cover all types of activity from cleaning and fast food to children ’ s theatre schools and recruitment .
How do you choose a franchise which is right for you when there are so many ? It depends on your interests and lifestyle . Do you want to work fulltime or part-time in the business , do you want to be hands on or have a management franchise where you employ others to do the day to day operations . Many people chose franchising because it can offer a better work-life balance ; many franchises offer enormous flexibility in how you can fit work
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