What is Franchising?

The term 'franchise' or more specifically "business format franchise" describes a specific kind of licensing arrangement where the owner of a business (the franchisor) grants to another person (the franchisee) the right to run a copy of that business, usually within a limited area and for a limited area of time.  The word 'copy' is important here.  A common, but often unsuccessful form of franchising just copies the brand and leaves the franchisees to get on with it.

In a modern franchise, the franchisee should get everything they need to be able to run the business the way the franchisor does, without having to learn the hard way what works and what doesn't.  The Franchisor gets the opportunity to grow more quickly with less investment than they would otherwise need and without the risk of damaging their brand through inconsistent service.

If you want to find out more, why not download our free presentation "What is Franchising" or book a place on a Franchise Roadshow for impartial, independent advice on choosing or setting up a franchise, or visit one of the many websites dedicated to franchising that are featured on our Links page.