Franchising your existing business may be the best way for entering into the emerging markets. Markets like China and India have complicated regulations and rules for owning a business and operating it locally. However, the best way seems to be franchising.
With the help of franchising, a franchisee can own the business and at the same time the franchisor can also earn a certain percentage out of the profit.

Why should an established business get into the hassles of registration, licensing etc when an alternate option of franchising is available? It takes a lot of time, money and effort to get a new business started. Franchising is the quickest way to enter the emerging markets.

There are many British retailers like Mothercare and Agros that have used successful franchise models to get into the emerging markets. These retailers have earned lots of profit within a very short span of time. Companies have also gained fame and popularity in these new markets.

In the next few years, China can be one of the largest emerging markets with India in the second place. In fact, the country can be largest market within the next ten years. Franchising seems to be the ideal route for many UK companies who can tap these newer markets that have a great potential in the near future.

To buy a franchise is one of the excellent ways to own and run a business successfully. You make your own destiny and can be your own boss. There is no doubt that running a successful business may lead you to huge rewards. It may change your fate, not just in monetary terms but other aspects as well.

But before you become a franchisee, you should ask yourself various questions. The most important question is which franchise to select. There are many franchising opportunities. Some may suit you others may not. There are some franchise holders that provide ongoing advice and other support plus opportunities that may help you in the long run.

One of the other considerations is the cost factor. Cost is an important consideration as the investment required for certain franchisees may be quite high. The monthly management fee is also an important criterion. You should therefore analyse and think carefully and then make a decision.

You need to research the market by speaking to a lot of people who are in the industry. You can also read the various franchising publications. This way, you can gain a lot of knowledge and experience.

You should do your homework and get as much information as possible before you take any decision.

Christian Lister has been appointed to the Board of Directors of the Genesis Initiative. He is the founder director of the fast growing X-Press Legal Services Ltd. Genesis in the SME sector represents the interest of some 400 different groups. It is an umbrella organisation representing the trade associations.

According to Executive Director of the Genesis Initiative, Alan Cleverly, the future strategy for Genesis is reflected by Christian’s appointment. Christian has accepted this position which has helped them gain good momentum. They were delighted that he had accepted this position.

He added that in order to foster a “can do” culture, Genesis optimises potential growth by working on behalf of SMEs. The business will flourish if they will participate in attaining the structural and economic reforms. He emphasised that the voice of the sector can be heard loud and clear by galvanising the SME community.

Cheshire-based X-Press Legal Services has 43 offices across the UK. Christian is the Operations Director of Cheshire-based X-Press Legal Services. It was launched as a franchise in October 2005.

Christian was delighted in accepting the invitation to join the board. He said that within the UK, Genesis has a powerful position. They have active supporters in House of Lords and the House of Commons.

Chemex International has been strengthening its management team so as to expand the company. The company has already appointed Ron Hutton as the sales director and James Trahearn as the non executive chairman. Chemex has been in business for the last twenty two years and till now it has been growing. Chemex International has become one of the leading suppliers in hygiene and cleaning materials in Europe and UK.

James Trahearn the newly appointed non executive chairman comes from a typical background in business development and corporate finance. Thus he brings in a vast experience and knowledge that will surely compliment with the skills of the existing team of the company. James will offer a seasoned view in the development of successful structures within the business.

Ron Hutton also has a successful track record in the arena of franchising. He was earlier working at Rainbow International as the head of franchisee recruitment. Ron will be mainly responsible for increasing the sales both in national accounts and franchising.

According to the director of Chemex Operations Sean Derrig, the business will surely continue to grow despite the recent credit crunch and the economic climate. The franchisees of this company have been experiencing strong sales in the initial periods of 2008.

In Ireland, the turnover for franchising business amounts to around €1.6 billion. That is why the Bank of Ireland encourages the importance of the potential growth in the sector of franchising.

The average set up cost for a franchise may amount to €290k but the growth will soon amount to €350k for each outlet. Banks expect the potential owner to provide around 30 to 40% of the total investment.

The cost in starting a franchisee may be divided into two parts, the initial start up cost and the ongoing payments. The deposits for most of the franchises are refundable. You also have to pay the initial franchisee fee. You need to pay this fee for the right to use the brand of the franchisor. This fee is associated with every franchise. The franchise fee can sometimes be negotiated. The average fee for a franchise is around €20,000.

The main costs include the fitting of premises such as signage, fittings, equipment and other such items that are in the Franchisee Agreement. The average costs may go up to €250,000.

The ongoing costs include the regular annual or monthly fee. You have to pay irrespective of your turnover. This ongoing cost averages to around €1,000 every month.
You would also have to pay the management or royalty fee which is around 7 to 8% net of VAT.

Franchising helps you in providing a route towards business ownership with the support of a larger organisation. For new business owners, franchising is often the best choice as it acts as a learning curve in operating a new business. It is an opportunity to get into business but under a banner. The business product or model has been proven already and you just need to work on it.

Even banks have acknowledged that it is much safer in lending to franchisees. For an established franchise, many major banks are willing to lend up to seventy percent of the start up costs. In the case of new franchises, the figure may come down to fifty percent. Banks expect the franchises to have thirty percent of the ongoing costs as unborrowed funds that is commonly known as liquid capital.

Since you are investing in a developed and a proven business system, you hardly require any business management experience or experienced people in the relevant industry.

Franchisors provide you with all the support and training required to run the business successfully. Even if you do not have any prior experience, but are willing to learn and put in the efforts, franchising can help you to succeed in business. Therefore, franchising is often the best way for young and enthusiastic entrepreneurs to step into the business world.

There are many advantages of being a franchisee. First of all, you do not have to come up with a new idea as you are buying a well proven and tested system. The well established and larger franchise operations are often involved in national advertising campaigns. Thus you can perform business under their well known trading name.

There are many franchisors who offer comprehensive training programmes thus you can enhance the skills required in the operation of your business. As far as customers are concerned, they usually prefer to deal with a business that has a strong brand name in the market.

The franchisee agreement also provides training on how to operate the business and implement the franchisee concept.  Besides all this, there is ongoing support in certain activities including the launch of business, marketing campaigns, attaining sales contracts and sourcing stock.

The franchisor also maintains an interest in your business via the collection of a service fee. That amounts to a small percentage of the total turnover. This particular fee helps the franchisor to support programmes like ongoing training, product development, national marketing and other promotional campaigns.

Thus you can easily set a franchisee and start your own business. Being a franchisee, all you have to do is focus on your efforts and success can be all yours.

If you are a new franchisor then you should follow a few guidelines before you get started with your new business. To start a business is quite tough, so it is necessary for the franchisor to stick to some golden rules.

The first thing you should do is contact the BFA – British Franchise Association. This association has immense knowledge about the sector and different franchisors. The BFA publishes a guide for franchising and it is suggested that you should get a copy of it.

You can even attend a seminar organised by the BFA. All the potential franchisors in the seminar will surely help you to gain further knowledge about the franchising sector. You can gain information that may help you in growing your business. You should also have a talk with the existing franchisors. They will be able to provide you with some practical and general advice on the disadvantages and advantages of being a franchisor.

You can contact some consultants who are affiliated to the BFA. They have a vast knowledge about the industry and they can provide with the right guidance and unbiased advice. You can structure you business plan in advance so that you do not end up making any mistakes. It is suggested that you protect your brand. You should also register your patents and trademarks.

These are some basic rules that you should stick to in the development of a franchise model for your business. Stick to these golden rules and you will be a winner.

These days there are a large number of franchises available and it is very important to choose the right franchise for your business. The decision to purchase a franchise should not be made in haste. There are many aspects that you should investigate. You can take the help of professional consultants in your search for a good franchise.

There are many franchisors who say that the recruitment of franchisees is one of the biggest barriers in the growth of the company. New franchisees are not making positive decisions in starting their own business. They are now being very selective purchasing a franchise rather than being forced into a particular direction.

Taking time in selecting the right franchisee is quite imperative. Franchisors tend to offer certain attractive incentives so that you make a decision very quickly. But it is suggested that you should not go by these offers or attractive schemes. You should get involved in detailed investigations before you go for a franchise.

It is very important to research before you sign any legal agreement or make any financial commitments. You should take the help of a professional who will help you in explaining the clauses in the franchise agreement. Make sure that you understand all the terms and conditions clearly.

Remember, it is always better to do adequate research before you take up any franchise.

Natwest was one of the first banks in UK to recognise the strong potential of franchising. This happened in 1981 when the bank established a dedicated and sincere team to look after this sector. Still Natwest remains a clear market leader in the sector of banking that provides services to franchisees and franchisors as well.

Every year Natwest lends thousands of pounds that helps people in starting their own franchised business. All these are procured by some specialist franchise managers. These managers have been well trained in franchising matters and are well aware of the changes and industry trends.

Natwest also provides a franchising guide that includes some vital guidance and a summary of services that would help you in your business. This guide also includes some tips on the expansion of your business.

To start a business can be tough. Natwest comes with all the solutions in this guide so that you do not face any problems. You can experience a full range of benefits.
When you start as a new customer, you receive two years of banking absolutely free. This is a great opportunity for new entrepreneurs who find it really difficult to get finance for their business.