The growing popularity of franchise businesses in the UK
Franchising as a business has evolved greatly over the years. It is now considered one of the safest ways of conducting a business minus the additional risks and costs. Franchising is sort of an agreement between two partners. The franchising of an already popular organisation saves the company from incurring further costs into departments like advertising and brand building. A franchise as a business method has gained immense popularity in UK.
Contribution to the UK economy The Franchise business has enormously contributed to the national economy. The increase was found to be about £7.4 last year. Thus, it is clearly evident that UK franchises have contributed a lot to the overall growth of the economy.
Different franchise agreements There are many different types of franchise policies. In manufacturing franchise, the original manufacturer allows the franchisee to manufacture goods using its name. In other words, a local manufacturer might produce goods and services using the brand name of the parent company.
Business and product franchises In business franchises, the local owner produces products or distributes them on behalf of the parent company. In a product franchising agreement, the local company or the franchisee sells the manufacturer’s products to the customers. In addition to these, the local owner might carry the business in the name of the original company for a stipulated time period.
The different varieties of franchising are evidence to the evolution of the franchising business in UK. However, it is recommended to consider the market scenario prior to entering into a franchise agreement.