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;

About The Author

Joel Bissitt

Joel has been an entrepreneur since the age of 19, now 33 years on he has experience of many different industries including retail, catering, health & fitness, technology and sport. Joel is our MD, the CEO of the Quality Franchise Association & has been a Franchisor twice himself. He is also founder of Franchise UK, the UK’s largest online franchise directory established in 2004 and owns other franchising publications including Franchiseek, an international franchise directory. Through these roles Joel has helped hundreds of franchise brands grow over the last 20+ years.

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