Franchising has many benefits for entrepreneurs
There are endless reasons why franchising is the best option if you want to start a business. The main reason behind this is that you not only enter a tried and tested business model but you also do not have to worry about creating a known brand. You do not have to deal with things like organising, initial advertising and finding a start up location for your business. The business is already there, you just have take charge of it. Also if you have any problem in operations, you always have support of the franchisor.
According to a survey in 2007 by the BFA, the franchising industry is worth £10.8 billion and around 93% of the franchisees are running a profitable business.
Richard Holden, the head of franchising at Lloyds TSB, said that commercial failure rates of franchisees is much lower than reported figures for independent businesses. The situation of the global market has altered many times during the past few years but franchising still remain an attractive option for existing and new business franchisors.
Cathryn Hayes, the head of franchising at HSBC Bank Plc., said that securing finance is easier for franchisees than conventional start ups. She also added that franchising is not an industry as such but it is a way of doing business.