What does it mean to be a franchisee or a franchisor

When a business owner (franchiser)sells rights to a third-party (franchisee), they are franchising.

As a franchisee, you will be your own boss, and will sell products and services using a proven model. You’ll receive support and training from the franchiser.

You will need to adhere to the company and brand guidelines. You will also be responsible for building a client base, ordering inventory, staying on top of your business admin and adhering to health and safety regulations.

Image credit

What is the franchise system?

After signing the franchise agreement and paying the initial startup cost, you will run the business on a daily basis and receive a portion of its revenue. For Franchise My Business advice, contact www.ashtonsfranchise.com/franchise-my-business/

Three different franchises exist:

• Business format franchise- When a company sells a licence to trade under a brand name, along with a guide on how to operate the business
• Product distributor franchise- providing a product to an authorised distributor, who may use the brand of the company, such as fuel at a gas station, with no business support.
• Management franchise- A manager of franchisees focuses on business development rather than the daily running of the business.

Franchise Opportunities

Franchises can be large companies or small businesses. They range from pet care and food franchises, to gyms and shops, to coffee and food franchises. McDonalds, Subway, and Costa Coffee are some of the most popular franchises in Britain and around the world.

Image credit

Franchisees enjoy a number of benefits, including:

• Take on a concept- you will get a business ready to go with a business model that has been proven.
• Access to Training- The company that sells the franchise will provide you with training on everything, from advertising to products and managing stock.
• Guidance and support- you will have access to resources for marketing, branding and business.
• Less risks- With an established customer base, and experience in the marketplace, it is easier to predict success and profitability.