Things you need to know before investing in a franchise
The franchise industry in the UK is flourishing and it has a very important role to play in the economic growth of the nation currently. You can opt for any kind of franchise; it may be one which has a perfect work plan and a product that is instantly marketable. You do however need to be well-versed with the risks associated with the running a franchise prior to investing in one.
The role of the business owner
In a franchise, the business owner runs the franchisor’s business under his/her company’s name and rules. The franchisor is the owner of the business and the franchisee is the one who runs it by using the franchisor’s company image.
The advantages of buying a franchise
One of the simplest ways to gain profits and be successful is to have a franchise. In many cases, the brand image and recognition is taken care of by the parent company. The only aspect that the franchisee needs to look into is acquiring customers and selling the products to them.
Most franchisors have a functioning system which helps you run the business.
Types of franchise business
Franchise business can be split into three types, the business format, the franchising type and the distributorship. The business format is the most common format and here the franchisee is provided with training regarding the service or product. The franchising type is where the franchisor sells the trade name to the franchisee. The distributorship is the last and third type, the original parent organisation provides the rights to sell its products.
Thus it is completely your decision about the type of format that would suit your franchise.