When it comes to franchising, there are a lot of things to consider. What kind of franchise do you want? What is your budget, and will you succeed?
At The Travel Franchise, we aim to help bring some clarity to this industry and provide you with the answers to the most common misconceptions when it comes to franchising.
What are the benefits to buying a franchise over starting your own business? Is there value in taking on a franchise? According to new research from the bfa, franchising is thriving.
Franchising is now a major factor in business growth in the UK and these numbers are expected to continue to grow. The bfa’s report shows that franchising contributes an estimated £17 billion to the UK economy per year and that 93% of franchisees claim to be profitable even during this time of economic uncertainty.
The report reveals that there are 710,000 people employed in franchising in the UK which has increased from 589,000 since 2015 In turn, six in 10 franchised units turn over more than £250,000*
This sector is clearly strong, but what are the common misconceptions when it comes to franchising?
‘Won’t buying a franchise be expensive?’
Some franchises can be expensive, there is no getting around that. Did you know that buying a McDonalds franchise can cost in the region of £1 million? That is a lot of burgers you will need to sell to make that fee back.
Every new start-up cost money – however you can start a business on a budget. Big brand name franchises like McDonalds, Subway and more will cost you a lot of money and essentially you are paying for the brand name. However, there are many smaller franchise businesses that offer great packages that are much more budget friendly that could work for your financially.
‘Won’t I be limited to what I can do with the business?’
With some franchise businesses, you will need to ‘toe the party line’, this can be frustrating when you want to run your own business, but if you are taking on a franchise with a huge brand this is to be expected and comes with the territory. Sometimes, the bigger the organisation – the less freedom that you will have.
However, this is not the case all of the time. Yes, there are certain things that you need to do, but this doesn’t mean that you have to compromise on creativity and a strong franchise organisation will actively encourage their franchisees to do this.
‘Am I not just buying a name?’
Let’s not deny that a name, a brand or business can have a significant impact on people’s perception of your business. The more renowned or established a business is will certainly help you find customers and grow, however on the flip side it can also have a detrimental impact if people have previously had a negative experience with the brand.
Buying into a business’ name is one of the biggest selling
points for franchising. It brings you brand recognition and company reputation,
two of the most desirable features businesses owners are trying to achieve.
At The Travel Franchise, we have garnered a strong reputation for being a first-class business within not just the travel industry but in the franchising sector as a whole. Our hard work over the last 17 years has helped cement our reputation which in turn has helped attract over 700 people to join The Travel Franchise and be part of our community.
We want to run our business well and we only make money if you do – more importantly, every day our reputation is the line, so it’s in our best interest to help our franchisees every step of the way which is something that we are very proud of.
‘I haven’t run my own business before – can I really do
Yes you can! We are not saying it’s going to be a walk in the park for everybody, and there might be tough times ahead, but that is the case in any business.
You don’t necessarily have had to run your own business to succeed. In fact, most of our franchisees are first time business owners. Some of our franchisees even consider it an advantage to have not run their own business. All that matters is that you have ambition, drive and overall a passion for travel.
Entrepreneurs may have years of business experience under their belt, but their companies still fail and quite often the reason is lack of passion.
The key to success is having a passion for what you do, enhancing your drive and dedication. Franchising is a great opportunity for those who want to turn a passion into a profit without a need for lots of experience; the business basics are already set out.
At The Travel Franchise, we are just like you – we are passionate about helping individuals not only start their dream career but enjoy exceptional levels of success. We offer continuous support to our franchisees and runs regular training events and retreats to help our franchisees realise their full potential on both a personal and professional level. We are proud to help people learn not only how to build an amazing travel business, which is a tangible asset, but also how to continue to grow it without limits.
*Bfa Franchise report 2019