When a franchise is not a franchise
Made to franchise business:
This is a business where a group of people float a business based around the franchise model. The group will have no past experience of a tried and tested method, nor any intention of actually running the business. These groups almost immediately start advertising for franchisees after creating their franchise business model.
A franchise has to be built around a well established, successful business. Creating a ‘made to franchise business’ with no history of success is against the very principle of franchising. Those who make success of this approach are few, but there are hundreds whose business does not even get off the ground. Some people use attractive marketing techniques and sell anything without caring whether their schemes work or not, robbing people of their savings.
MLM, projected as a UK business franchise:
Multi level marketing has had a severe battering in the last few years. As people have avoided it, many of the schemes got re-branded and projected themselves as business franchises. You can easily discover their true origin. Although MLM technically fits the definition of a franchise, it brings success only to the parent company and to some very smart and powerful sales people who are actually employees of the company.
To summarise – it is only a small percentage of franchises that are run this way. Genuine franchising is a huge success not only in the UK but across the globe.