Buying a Franchise in the UK
For people in the UK who would like to manage their own business one option is to buy into a franchise. Franchised businesses account for a significant part of the UK economy. In the last year alone the economic contribution of franchises was as high as £12.4 billion. Franchising as a concept has been around for hundreds of years although it is in more recent times that it has become common place.
Franchising has developed because it offers potential business advantages to both the buyer and the seller of the franchise. For franchisees the main benefit is becoming part of an established brand with an existing client base. Additionally marketing costs are shared and training and support provided.
Any person who is considering buying a franchise should look at a number of factors before making their investment.
Demand for the Franchises Products & Services
Clearly before making any investment it needs to be established that the franchises product is one for which there is high levels of demand. It is not just important to consider demand on a national level but also in the area in which the branch of the franchise is to be based. Therefore a major factor when considering demand will be location. An ideal investment will be for a product for which there are high levels of local and national demand and also for which the amount of competition in the area is low.
Support and Training
Many franchises will include initial training and ongoing support for their franchisees. This can make franchising ideal for people who would like to manage their own business but have not had past experience of doing so. The amount and quality of support provided will vary from franchise to franchise. For this reason potential franchisees need to look to invest in a franchise that will suit their existing skills and level of experience.
Potential for Growth of the Business
Even a product for which current levels of demand are high may not be in demand in future years. Franchisees need to consider if demand for the product is likely to increase or at the very least maintain an existing high level. Most franchises require their franchisees to make a make a sizable starting investment and so the long term potential of the business should be a major consideration. In this area franchising can be advantageous as continuous research and development is likely to be included in the franchise agreement.
As can be seen there are many factors to be investigated before entering into a franchise agreement. However by choosing the right franchise a person can soon find themselves running a successful and profitable business.
About the Author:wok2go is a new restaurant franchise in the UK. As the UK's first Chinese & Thai fast food franchise wok2go represents a unique franchising opportunity.
Article Source: ArticlesBase.com - Buying a Franchise in the UK