The franchising industry continues to grow as the number of people taking on franchise opportunities steadily increases. This means that now, the franchising industry plays a really important part in the UK economy. But it’s not just the economy benefitting, it’s the people involved in the franchises too.

Before investing in a franchise, you need know that there are four main models to consider.

Manufacturing franchises – The franchisors allow the franchisees to manufacture products. The franchisees can also sell products under the franchisor’s brand name and trademark. This kind of franchising is commonly seen in the food and beverage industry.

Business franchise ventures – This type of franchise allows the franchisees to purchase and then distribute products. In this kind of franchising, the franchisor provides the customer base to the franchisee.

Product franchises – With this model, the franchisor or company use the agreement as a method for distributing their products in the market. Under product franchises, the franchisors sell the rights to the franchisees to sell products under their brand name. For this, the franchisees need to pay some fees and purchase a minimum amount of products.

Business format franchises – This is one of the most complex types of franchises as it involves a broader relationship between the franchisee and the franchisor. In this method, the franchisees need to pay the fees to purchase the operating processes, products and brands of the business. In return for the fees, the franchisors need to provide training and support.

With so many different models available, you can invest in the one which suits your needs and your aims the best.

Clare always had an idea that one day she would like to work for herself as she was a very self driven and self motivated individual. However, she never had a clear idea on what type of work she would like to manage and where to begin from. She heard about franchising and thought that this might be the best way to run her own business.

Clare started to research franchise opportunities and what was involved with franchising and the concept of Popstars Academy instantly appealed her. She said that the concept was just perfect and that the branding was appealing and eye catching as well. Before she decided to investigate franchising, Clare worked in HR for 15 years, within large private organisations. During her time in the HR field, she continued her education by studying a Masters degree in Strategic Human Resource Management.

As she entered the world of franchising, she found that the training given to her was really beneficial. At the beginning of the relationship, she received a comprehensive Induction Programme along with supportive material and the majority of her training was completed face to face.

Since launching her business, the Head Office of the company has always been available to provide the required guidance and support. She also receives routine review meetings, which allow her to review her progress and to focus on her future developments.

A home care worker for top franchise, Caremark, won a national award which recognised them as Carer of the Month for January 2010. The winner of the award, Nazir Hardisty, joined the home care providing franchise (Kingston) in June 2008 as a senior staff member. This makes her a big influence on junior employees.

Director of Caremark in Kingston, Carl Ward, said that Nazir personifies the franchise’s approach to provided care in the home. He said that she works with a level of desire and dedication that will make a difference to her clients’ lives. Caremark has a franchise network of more than 50 brances in Ireland and the UK. With this much competition, being awarded Carer of the Month is a great achievement for Nazir.

Winning the award for the month of January – when the franchise suffered from snow and conditions that made it difficult to visit clients – displays her sense of duty and resolve. Caremark holds the award as a chance for carers throughout the franchise to be recognised for their commitment and dedication for delivering the best level of care to clients in their homes.

The franchise’s local offices have started giving away their own awards to reward staff members and winners are then put to the head office support team so that they stand a chance to win a national award.

The franchising method has become immensely popular in the UK in the past few years. Reports suggest that franchising has played an important role in strengthening the UK economy.

Franchising, in the simplest terms, can be described as the agreement between a franchisor and a franchisee in which the franchisee obtains the right to conduct business under the name of the original organisation. However, franchising is not as simple as it sounds and can be broadly classified on the basis of different franchising agreements.

Following are the major categories or types of franchising methods and agreements:

Manufacturing franchise

In this method, the franchisee can manufacture the products and services of the main organisation. The franchisee can also sell those services or products on the market using the brand name of the original organisation. A manufacturing franchise agreement is generally common in the food industry. The franchising company gets an initial fee in this agreement.

Business franchise

In this franchising method, the franchisee purchases products from the franchisor. The franchisee then also distributes the products to consumers. Vending machines are a common example of a business franchise type of agreement. In this method, the franchisee purchases the vending machines and gets a share of the revenue earned.

Product franchise

A product franchise functions on the basis of the agreement that the franchisee will distribute the products of the franchisor to the customers. The franchisee can also use the brand name of the organisation. The franchisor will have to pay a franchise fee in this particular type of franchise.

Buying a franchise has become the most popular way of starting a successful business today. More people have opted for this kind of a business because of the success rate it offers. While there are many factors that contribute to success, it is important that the initial choice is made carefully. If you plan to start a franchise business, here are a few things you should know before buying one.

Management structure – One of the most important things to consider is the managing structure the franchisor has for developing the business. A franchisor that has new approaches and ideas is more competent at developing a successful business. Also find out if you can change the product mix and pricing strategies to enhance the business.

Unique products and services – A common business is never as successful as one that offers unique products and services. Franchise companies that have unique concepts, ideas and services are more likely to be successful as they tend to have less competition. So ensure the type of franchise you choose is something customers will want.

Support from current franchisees – If it is the first time you are running a franchise, you will obviously need some training, support and tips as well. Good franchisors will permit you to speak to other franchisees for tips and to help you become successful. Some franchisors may also offer initial training, which can be useful in starting a successful business.

In addition to these, you should also consider the area where you are opening up your franchise. Make sure it is ideal for your business and that people around there will require your services.

Over the last few years, buying a franchise has become an ideal way of starting up a new business. This is an established business that allows franchisees to use the brand, name and products from a well known franchisor. Owning a successful franchise is a great way for people to fulfil their dreams of starting their own business. More importantly, franchises can be a huge success and this makes them an ideal business opportunity.

Why do franchises experience more success?

There are many factors that increase the success rates of franchises. Following are some of the most important factors that play a role.

Brand name – The fact that franchises have a brand name that is already recognisable to customers enables these businesses to achieve more success. Better known brands instil feelings of trust and security in customers and this results in customers being interested in these products and services.

Well designed business plans – Most established franchises have a tried and tested business plan which is given to new franchisees. This assures these franchisees of a successful business before they even start. The business plan often includes employee training, business operating tips and other things that will enhance business.

While there is no doubt that franchises are more successful than new businesses, it is important for entrepreneurs to invest in suitable ones. The business should be something they like and offer a chance to grow. This will not only make the franchisee successful but the overall brand name will gain success too.

UK’s popular home care provider Caremark recently appointed a new Care Manager, Jackie Everidge, in its Redcar and Cleveland area. This has been done as part of the franchise’s dedication to providing customers in the Redcar and Cleveland area with high standards of care and support.

Redcar and Cleveland’s Caremark franchise seems to going from strength to strength considering their latest achievements. The home care provider was chosen to support the Redcar Borough Council with the company’s Indirect Payment Support Scheme. The franchise also received a verification of the 2 star rating for Good Level of Service it was given recently. The rating is the highest for the most recent inspection carried out there.

Managing Director of Redcar and Cleveland’ Caremark franchise, Charles Folkes said that he could not be happier with the appointment. He added that Jackie has shown her complete commitment for offering a customer focused and flexible service. This includes providing customers with support and companionship in their own homes.

Appointing Jackie Everidge as the franchise’s Care Manager has shown the keenness of Caremark (Redcar and Cleveland) to deliver superior quality at all levels of their business. Everidge has more than six years of experience in the care industry and is currently striving to become the best care provider in the area.

At the start of a new decade, Dream Doors, the UK’s most successful kitchen facelift franchise, has implemented three key strategies to help its 30 franchise owners grow their businesses. In the spring, the company will launch a new high-end kitchen door range at a price that offers its customers previously unattainable products. A new national marketing initiative has already begun with adverts in The Times and the Daily Mail. By forming close links with Checkatrade – a national customer feedback scheme – Dream Doors is tightening its customer care programme to ensure complete buyer satisfaction.

Dream Doors’ founder and Managing Director, Troy Tappenden said, “I’ve spent the last decade building Dream Doors from a small local business into a franchise with 30 showrooms around the country. We’re the market leaders in our sector, and have won lots of awards in this industry. But I’m not satisfied with just that. I feel we can take this business to new heights, and 2010 is the year that we move into an even bigger league.”

At Dream Doors’ annual conference held recently in Portsmouth the company welcomed more than sixty delegates and five new franchise owners to announce its three New Years’ resolutions.

The first to present was Dream Doors’ biggest supplier, introducing a new door range that will enable franchise owners to sell high-end products at middle-market prices. Dream Doors Operations Director and bfa Regional Chair Kelly Chambers said, “This type of door was traditionally reserved for buyers with £30,000 or more, but now they’ll be available to Dream Doors’ customers with less than £4,000 to spend on a kitchen facelift. What’s even better is that all of these doors are made-to-measure. We’ll also be adding to our own exclusive range, which at the moment offers seven door styles that can’t be bought from any other company in the world!”

After undertaking intensive market research, Dream Doors has launched an advertising campaign that mixes franchise owner’s local marketing efforts with adverts in key national titles.

Chambers added, “Our new consumer marketing campaign hit the streets last month with adverts in The Times and the Daily Mail. These were testers for a new style of pared down advertising that has a message that’s easily understood. Later this month we’re placing a three-month series of half-page adverts in the Mail on Saturday. With more readers than any other Saturday paper, and an average age of 57, it’s sure to increase public demand and enquiries for all our franchise owners.”

Tappenden said, “Without satisfied customers all of this marketing activity is academic. Which is why we asked the owner of Checkatrade, Kevin Byrne, to come to our conference and make sure all of our marketing efforts are backed up by his fantastic customer feedback and monitoring scheme. Kevin demonstrated to all of our franchise owners how to use the Checkatrade system to boost Dream Doors’ sales even more. To date, some of his members have seen a 50% increase in sales by properly using the site, and that’s something we’re now working towards as a network.”

You must be probably aware of the popularity of the franchising method in the present scenario. Investing in a franchise is a wise decision if you are planning to set up your own business. However, you should consider some points before you actually take this decision. Some of the important points to consider are as follows:

Is your franchise dependent on the socio-economic mix?

Almost all the franchises begin from one area. The success of that franchise then compels the owner to begin similar franchises in other locations. However, the area in which you will set up your franchise will certainly be different from the area in which the main company operates. Therefore, you should ensure that the area selected consists of your target customers. For instance, if you are selling toys then you will certainly select an area which has a larger population of children, e.g. a school area or near a theme park.

Change of management

This is an important factor to consider, as many times a change of management has a considerable impact on the success of a business. Try to find out if the current operating model or business will be affected by any change in the management.
Profit margins

A known fact is that almost every business survives solely on the profit margins. The same applies to your franchising business as well. The profit margins should be high enough for the business to emerge successful over the years. This will determine if you are able to pay the franchising fees and earn a handsome profit for yourself. You should also try to find out if the products and services supplied by the organisation are popular among the consumers.

Consideration of these factors will help you in making a good decision.

Card Connection, one of the leading greeting card franchisors and publishers has revealed that it will now supply greeting cards to BP. This means that all the franchisees of Card Connection will merchandise and supply cards to 370 BP locations in the UK.

Andrew Cutler, the sales director of Card Connection said that they are one of the largest greeting cards publishers all over world. So, they are perfect for BP’s owned network.

Andrew also said that, their company has a team of 85 franchisees which will select and deliver greeting cards to BP. These franchisees will supply cards from the range of 1,200 quality product designs. In addition to this, their franchisees will also visit the stores to ensure that the products look appealing to the consumers.

David Pitron, the UK Trading Manager of BP said that he is happy that they will be working with Card Connection. He also stated that they are looking forward to work more with Card Connection.

Apart from BP, Card Connection franchisees also supply other companies such as Netto, Budgens, Costcutter, Londis, Haldanes.

At present, Card Connection has very less vacancies and it is looking for the franchisees who want to run an expanding business. Moreover, the candidates should also ideally have some management experience.