Top 5 reasons to franchise your business?

Considering franchising your business in the UK? Please see below the top 5 reasons to franchise your business;

  • Rapid growth – Franchising a business can lead to exceptionally rapid growth for your business. Compared to organic growth franchising is an extremely low cost and potential fast way to expand your business.
  • Flat management structure – Your franchise investors or Franchisees are independant business operating under a franchise agreement with you they are not staff. Because of this many Franchisors have an extremely flat management structure.
  • Raise capital – If you are opening multi site franchises it’s your Franchisees that will be investing in setting the up business in their chosen area or franchise territory. This means as a Franchisor you can access multiple capital streams quickly and at no risk to your business.
  • Grow internationally – Just look at the fast food companies and you will see how franchising a business is great for international expansion. Usually this growth is achieved by sell what is a called a Master Franchise, which is basically an agreement which allows the Master Franchisee the right to operate as the Franchisor in the target country.
  • Exit strategy – Because of the above successful franchise businesses are very attractive to investors and many small franchise businesses have grown quickly creating substantial wealth and an easier exit strategy for the Franchisor

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