How does franchising work?
Franchising is a partnership between a successful company, the franchisor, and an individual or individuals, the franchisee. The franchisor grants the rights to its brand name, business model, systems and processes to the franchisee, for use in their own local business. Every TaxAssist Accountants shop across the UK is locally owned and run by a franchisee, trading under a common brand.
Franchising is based on proven systems: the franchisor has already developed a blueprint for success that franchisees can follow.
What do I receive for my investment in a franchise?
There is an initial investment paid by the franchisee to the franchisor, which covers the initial set up requirements. This includes initial training, marketing, identification of premises and IT equipment, amongst many other things, which enables a franchisee to hit the ground running (a full break down can be viewed in our prospectus).
Franchisees then pay a percentage of their monthly turnover to the franchisor, in return for ongoing business support. The benefits of becoming a franchisee include:
- A brand with a strong track record of success
- Comprehensive training on running the business
- Marketing assistance and advice
- Easier to obtain finance than for a new business start-up
- Reduced risk on your investment
- Ongoing technical and operational support on everything from payroll to HR to software
- Premises design and décor handled by an experienced team
- An exclusive, defined trading area in which you are the brand's sole operator
- National brand exposure
The support of a franchise removes many of the hurdles of starting and growing your own business, as highlighted by research by the British Franchise Association: around 90% of franchisees have independently reported a profit annually for well over 20 years consecutively.
Is franchising regulated?
The British Franchise Association (bfa) is the only voluntary accreditation body for franchising in the UK. Its remit is to develop and continuously improve the standards of good practice in franchising and to accredit franchisors who meet these standards. The bfa represents more than 300 UK franchise brands each vetted against a strict code of business practice.
TaxAssist Accountants is a 'Full' and long-standing member of the bfa and we fully endorse their code of ethics and operate in accordance with them. For further information please visit their website: www.thebfa.org.
The 2018 bfa/NatWest Franchise Survey revealed some very positive statistics, with the UK's franchise sector now worth over £17bn to the economy; up over £2bn since 2015.
Franchising is a proven, tried and tested route into self-employment and the banks are supportive in providing funding, as there is a lower rate of failure than going into business alone.
You can fully prepare yourself to become a franchisee by completing the bfa's free Prospect Franchisee Certificate (PFC).
