Most people are aware of the big food franchises like KFC, McDonalds etc but do not realise how many industries franchising covers or indeed what is a franchise business model.

A franchise business model can be any type of business and is basically an agreement to use the same intellectual property ( branding ) and the same tried & tested method to either provide a service and/or sale of goods. Usually a local franchisee ( Franchisee ) would be granted an area to trade ( territory ) and trained and supported by the creator of the franchise business model ( Franchisor ) to launch and grow the business in the territory.

How do you set-up a franchise business model?

Firstly you need a successful business with a proven brand and business model. Then you need to be able to demonstrate that you can transfer these skills/demand in multiple areas and have the internal infra-structure to support the people that invest in your franchise. Assuming you have done this you will need to carry out the following to franchise a business;

• Business plan & financial modelling based on actual accounts for both the Franchisor & Franchisee franchise business models
• Intellectual property protection – If you have not already done so you will need to protect your logo, trading name etc
• Franchise documentation – There is a lot of this that needs to be completed including deposit agreements, NDA, franchise agreement(s), franchise operations manual, training manuals.
• Marketing & franchisee recruitment strategy – Recruiting new franchisees is a very difficult task and you will need a great source of leads to grow your franchise
• Support – New incoming franchisees will need to be trained and receive a lot of day to day operational support so you need to ensure you have sufficient resources.

To find out more about what a franchise business model is and how you can franchise your business complete the enquiry form below for a free initial consultation with one of our franchising experts.

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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