UK franchises: A great way of doing business
Franchising is an agreement wherein the franchisor enables the franchisee to work under their name. It means that the franchisor has sold the shared usage rights of his company to the franchisee to sell their products and services. Franchising is the latest buzz in the world of business in UK. Many companies in UK are entering into franchising for quick growth of the company. Business franchises in UK reported a contribution of over £5 billion to £12.4 billion to the UK economy. The franchising agreement is the heart of franchising. The agreement can differ from place to place depending on the type of franchising.
However, franchising in UK can be classified as follows:
Manufacturing franchises: This franchising is widely used by rations and brew industry. In this type the franchisee can manufacture and sell its products under the franchisor’s brand name and trademark. The franchisee owes an initial franchising fee to the franchisor after which it continues.
Product franchises: The franchisee uses the franchising agreement to sell its product under the franchisor’s brand name. Here too, the franchisee has to pay fees or pay as per the stock sold to the franchisor.
Part time franchises: Franchising is available as a part-time occupation, for example vending machine or internet based franchising. You can convert part-time franchising into full time too depending on your business needs.
Business format franchises: This is a very complex type and involves greater bonding between both the parties. Here the franchisee also buys the operational processes of the franchisor. Training is also provided.
These are the kinds of UK franchises that can help you. If you wish to know more you can do additional research.