Why franchise a business?

Franchising represents around £15bn to the UK economy so why are so many small business attracted to franchising and why franchise a business?

Franchising is a great way for small business to expand for many reasons, here are a few;

  • Raise capital fast – If you grow a business organically usually when you expand you will require additional capital for premises, start-up costs, marketing, staff recruitment. When you franchise a business it’s your incoming franchisees ( the investors that buy your franchise ) that raise finance so provided you can recruit new franchisees it gives you almost unlimited access to new capital fast
  • Flat management structure – By having a franchise network of people using your brand and systems you can keep your top management structure extremely flat, lowering overheads and speeding up decision making.
  • International expansion – Franchising a business is a great way to grow your business internationally. Usually this is achieved by granting what is called a Master Franchise effectively this gives right to the Master franchisee to operate as a Franchisor in the host country and/or region
  • Rapid expansion – Without the capital restrictions and international expansion opportunities franchising provides franchising a business can help you to grow your business extremely rapidly.
  • Exit strategy – If set-up correctly successful franchises business can be very desirable to investors. Not micro managing a business from the top down like an organically grow business can also offer additional exit strategies options.

To find out more reasons regarding why franchise a business why not arrange a free initial consultation by one of our franchising experts by completing the form below;

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