September 2024

What is Franchising?

According to the Collins Dictionary, a franchise is defined as "an authority that is given by an organisation to someone, allowing them to sell its goods or services or to take part in an activity which the organisation controls."

In my three years of experience in franchising, my simplified understanding is that franchising is "a fantastic way to start your own business using a proven business model, established brand, offering a solid work-life balance, healthy returns and extensive support from people who want you to succeed, plus a network of like-minded individuals you’ll likely form friendships with for the next 20+ years."

Franchising isn’t for everyone, but starting a business from scratch or going it alone, especially in today’s economic climate, is a daunting task that can feel isolating. Franchising has become an increasingly attractive option for entrepreneurial individuals who want to run their own business while seeking extra stability and security to help them get started.

With an ever-growing number of brands and sectors within franchising, combined with a talented pool of individuals, the possibilities are limitless.

Why Franchise?

There are many factors to consider when starting a business, no matter the path you choose. A common question asked during franchise recruitment is, "Why should I franchise? What are the benefits?"

From my observations, there are numerous benefits to franchising, and franchisors offer these to varying degrees. It is the franchisor’s responsibility to make you aware of these benefits with transparency and integrity, and it’s your responsibility to do due diligence and determine which aspects matter most to you.

Brand – Building an established brand with a solid reputation takes years of hard work, customer service excellence, and delivering quality products or services. Franchising gives you access to that established brand from day one.

Support – In addition to having a Franchise Support Centre dedicated to guiding you throughout your journey, you’ll also have the backing of the entire network. The support provided will be there every step of the way.

Training – A franchisor is obligated, both legally and ethically, to ensure franchisees are trained to the best of their abilities and positioned for success. An extensive training programme, coupled with a handover period from the outgoing franchisee, will be part of your onboarding.

Proven Business Model – A well-established franchise offers a tried-and-tested business model that has been refined over years of operation and is backed by the experience of the franchise network.

National Coverage – Being part of a franchise with a nationwide network allows for collaboration across locations. This enables you to deliver services on a larger scale with consistency and efficiency.

Expansion Opportunities – Expanding an independent business can be time-consuming, costly, and require significant marketing efforts. In a franchise, the systems and opportunities for expansion are already in place, allowing you to grow your business faster.

Supplier Discounts – Being part of a franchise network allows you to take advantage of supplier discounts that would not be accessible to independent businesses. Franchises benefit from economies of scale that reduce costs for franchisees.

Networking – Networking is critical to business success, both in generating leads and gaining support, guidance, and best practices. Within a franchise, networking opportunities abound, keeping you updated on industry developments.

How Does It Work and What Should I Consider?

Before diving into the research phase and making initial enquiries, it’s essential to reflect on yourself. Consider your goals, areas of interest, financial situation, and aspirations. Think about your location preferences, your attitude towards risk, and the timeline in which you want to operate. How much creative freedom do you desire? Are you looking at industries built to last? What do you want to earn, and how does this compare to what you need to earn? Also, think about your work-life balance. Finally, ask yourself whether you can go it alone or if you’d benefit from the support of a franchise.

Once you’ve reflected on these questions, it’s time to begin researching. This is a crucial step in the process. Franchisors are typically open to sharing information, so don’t hesitate to ask lots of questions. Understand not only the franchisor’s costs but also any other expenses tied to purchasing a business. Conduct thorough research online, attend franchise shows, meet like-minded individuals, and speak with current franchisees. Find out what suits you best.

It’s important to remember that while you are essentially the ‘customer’ in this situation, each franchisor has its own recruitment process, which may include several steps. While this might seem tedious, these steps exist for a reason. Franchisors have a duty of care to ensure the right fit for both parties.

While you, as an individual, are investing time, money, and effort into this venture, the franchisor is also taking a calculated risk when bringing a new franchisee on board. Their brand reputation and income stream are on the line each time.

Franchising offers a solid start, giving you an established brand, extensive support, and the autonomy to run your own business. You’ll benefit from being your own boss while having access to a community of fellow franchisees and a dedicated franchise support centre to guide you along the way.

While it’s not necessarily an easy path, it’s a proven one. Ultimately, the success of your business will depend on you. If you have the drive, ambition, and desire to run your own business with a bit of support, franchising could be the right path for you!

Emma Wakefield, Head of Franchise Recruitment, Signs Express Limited.

If you’re considering franchising and would like to work in a creative and innovative industry where no two days are the same, get in touch today to find out more about franchising opportunities with Signs Express.

We offer a number of ways to join our established network and have developed our business model with you in mind. Find a location that suits you and start-up your own Signs Express centre, or take a look at our established resale opportunities today.

For more information, please get in touch today and a member of our Franchise Recruitment team will be happy to help!