GirlGI | Girl Gone International Issue 6 | Page 70

What is franchising?
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, marketing systems and
operational procedures to produce and
market a product or service in accordance with the terms set out in a franchise agreement.
The franchisee pays a one-time initial
fee in return for training, often an exclusive franchise territory, a five year
renewable franchise agreement and a
business start-up package.
Franchisees normally pay a percentage
of their sales revenue on a monthly basis in return for on-going support and
training from the franchisor.

Why you should explore
franchising
The beauty of a franchise is that a lot of
the hard ground work is already done
for you – you are effectively buying a
‘business in a box’. The franchisor needs
to have proven that their franchise can
form the foundations of a profitable
and sustainable business. It is like being
your own boss but having the support,
marketing strategies and back office systems of a large organization behind you.

Many of the best-known brands such
as McDonalds, Subway and Domino’s
Pizza are franchise operations. However, there are a huge variety of other
franchise businesses in every sector
imaginable from property lettings to
family magazine publishing.
There are also many different styles
of franchise from management franchises where you appoint a manager
to run the franchise to part-time franchises, which you can fit to your own
unique lifestyle, social and family commitments.

How to Choose a
Franchise
Buying a franchise is a large commitment and not just financially. It is usually a five year agreement so you have
to be sure that you can work well with
the franchisor.
I recommend attending some of the
key franchise exhibitions held in the
UK and overseas where you can meet
franchisors and franchisees face-toface. Once you have shortlisted your
chosen franchises attend one of their
‘discovery days’ where you can find
out more about the franchise.
It is essential to be able to speak
openly to franchisees about their experiences – good and bad – most ethical franchisors will encourage this.