Franchise FAQS

If you are asking the question ‘can I franchise my business’, the chances are you are also pondering a whole host of other questions! This Franchise FAQS page is here to help you.

As franchise consultants we are often asked the following by clients looking into franchising a business:

How do I know if my business is franchisable?

The key question to ask is, why would someone buy my franchise rather than set a similar business up on their own?

As a result, to test the franchisability of your business, you’ll have to be very clear on what makes your business different. In other words, what does it have that would make it much harder for anyone to replicate it?

For example: the franchisability of business could include;

The Proven Business Model
A successful, replicable business model with a track record of profitability, therefore demonstrating that the business can be successful in different locations.
Unique Selling Proposition (USP)
A distinctive product or service that sets your business apart from competitors, so attracting customers and potential franchisees looking for a unique opportunity.
Operational Systems and Processes
Well-documented and standardised processes for operations, marketing, and management furthermore ensure consistency and ease of replication across franchise locations.
Brand Strength and Recognition
Having a strong brand identity and positive reputation in the market subsequently increases the appeal to potential franchisees and customers.
Financial Health
Strong financial performance and the ability to demonstrate profitability provides confidence to potential franchisees about the viability of the business.
Scalability
The ability to scale operations and maintain quality as the business grows. Therefore, ensuring that the business can expand without losing its core value proposition.
Support Systems
Can your business operations be learned through a strong training program? Can it also provide ongoing support and resources for franchisees, essential for helping franchisees succeed and maintain brand standards?

Need some more guidance in determining if your business is franchisable? We are always happy to talk this through, fill in the contact us form or call 0330 016 0028.

We will help you to grow your business by franchising

Franchise FAQS: How long will it take to franchise my business?

This is a bit like starting a business, the answer really is ‘it depends’. To franchise a business means having time to dedicate to getting the set-up right. That means getting the franchise model in place, along with all the necessary documentation. Consequently, the process really does depend on the resources available in the business.

To give an idea, you will need to consider;

Preparation / Feasibility Phase
Assessing the franchisability, developing a franchise business plan, and preparing a Franchise Information Memorandum (the full breakdown of what the franchise involves) and any marketing brochures.
Timeline: Typically this is 2 to 3 months, but maybe even up to a year, depending on the complexity and readiness of the business.
The Legal Documents
To clarify, this is essentially getting the Franchise Agreement drawn up by a franchise lawyer.
Timeline: About 2 to 3 months, including legal review and revisions.
Franchise Operations Manual
Documenting operational procedures, training materials, and brand standards.
Timeline: Typically 1 to 2 months, depending on the comprehensiveness of the manual.
Marketing and Launch
Developing marketing materials, launching recruitment campaigns, subsequent training required and opening franchise locations.
Timeline: 3 to 6 months, from initial marketing efforts to opening the first franchise location. This is an ongoing process, but in the early stages finding suitable candidates will depend on any existing contacts and what social media reach you have etc.

In total, the timeframe can range from 3-4 months to over a year, depending on the complexity of your business and what you have already accomplished. Additionally, the duration is influenced by the resources available and, importantly, the external support you bring in to assist with the process. It is best to get in touch with us and we can give a more exact timeline to franchise specific to your business.

Franchise FAQS: What is a franchise business?

Franchising is essentially a legally binding business agreement between an established company (the Franchisor), which seeks to expand its business, and independent third parties (the Franchisees). In addition, this arrangement is governed by a legally binding contract known as the Franchise Agreement. Through this agreement, the Franchisor allows Franchisees to use their trade name, trademark, and confidential business methods. In return, Franchisees agree to certain restrictions on how the business is conducted, which, in turn, financially benefits the Franchisor based on the success achieved.

Furthermore, Franchisees have the advantage of setting up in business with the support and advice of an organisation that has successfully carried out ‘First Phase’ pilot operations, which serve as a blueprint. Consequently, this system effectively eliminates many of the risks typically involved in a standard business start-up situation.

Franchisors

The Franchisor develops the operating blueprint, markets and develops the franchise as a whole, and helps franchisees improve their performance while maintaining and improving quality and service standards. The Franchisor provides the brand, experience, expertise, and complete know-how, reducing the costly learning curve in both time and money.

Franchisees

The Franchisee is responsible for upholding the Franchisor’s good name, maintaining and improving quality and service standards, and operating the business according to the established system. The Franchisee brings entrepreneurial drive, ambition, and motivation to the table, promoting, selling, and providing the franchise’s product or service locally.

Business-Format Franchise

A Business-Format Franchise is a model that offers the Franchisee a complete ‘blueprint’ for running the business, along with ongoing support and advice from the Franchisor throughout the franchise’s life. This ‘blueprint’ is typically based on the experience of running at least one external ‘Pilot’ operation. Franchising is often seen as a safer investment than starting a new business, as it involves buying into a proven business with experienced management, training, systems, and procedures.

Franchise FAQS: What are the common franchise sectors?

Almost any business can be franchised; it depends on the franchisability of the business model itself. Don’t be discouraged if your business isn’t in one of the most franchised sectors—this might mean less competition in finding new franchisees!

However, these sectors are the most common in the franchise world:

Food and Beverage
Includes fast food chains, casual dining, coffee shops, and specialty food concepts. One of the largest and most diverse sectors in franchising.
Retail
Encompasses retail stores, convenience stores, speciality retail, and service-oriented retail franchises. Offers a wide range of opportunities from clothing and electronics to home improvement and automotive.
Health and Fitness
Includes gyms, fitness centres, yoga studios, and health-focused franchises. A growing sector due to increasing health awareness and demand for fitness services.
Education and Tutoring
For instance, tutoring services, STEM education, language learning, and preschool franchises. Demand driven by parents seeking educational enrichment for their children.
Senior Care and Home Services
Such as senior care, home health care and residential cleaning franchises. Addressing the aging population and demand for home-based services.
Automotive
This includes auto repair, car wash, auto detailing, and automotive parts franchises. Stable sector with ongoing demand for vehicle maintenance and services.
Business Services
Namely B2B services, printing and marketing, consulting, and staffing franchises. Supports businesses with essential services and solutions.
Real Estate and Property Services
Covers real estate agencies, property management, home inspection, and rental services franchises. Varied opportunities in both residential and commercial real estate sectors.
Personal Care Services
Including beauty salons, hair care, spa services, and massage therapy franchises. Ultimately reflects consumer demand for personal grooming and wellness services.
Pet Care
Includes pet grooming, pet boarding, pet training, and pet supply franchises. Growing sector driven by pet ownership trends and increasing pet care expenditures.
Children’s party / activities
Including various children focussed activities such as sports, agility, art & crafts and experiences. Demand driven by parents ever increasing desire to find something different for their child’s party or after school activity.

Van-based franchises are popular

Franchise FAQS: How do I find the right franchisees for my business?

Expanding your business through franchising is an exciting and scalable way to grow. However, finding the right franchisees who will represent your brand and business in the best way is crucial. Here’s a comprehensive guide to help you identify and attract the ideal franchisees for your business.

Define Your Ideal Franchisee Profile

Before you start searching for franchisees, it’s important to define what you’re looking for in a candidate. Consider the following criteria:

Experience and Skills: Identify the skills, background, and experience that would make a franchisee successful in your business.
Financial Capability: Ensure they have the necessary financial resources to invest in your franchise and sustain it until it becomes profitable.
Personal Qualities: Look for individuals who are passionate, committed, and aligned with your company’s values and culture.

Develop a Compelling Franchise Offer

Your franchise offer should be enticing and clearly communicate the benefits of joining your franchise network. Highlight the following:

Brand Strength: Demonstrate the strength and recognition of your brand.
Support System: Detail the training, support, and resources you provide to help franchisees succeed from initial launch and ongoing.
Profitability: Provide clear information on the potential return on investment and financial projections.
Success Stories: Share testimonials and success stories from existing franchisees to build credibility and trust.

Leverage Online Platforms

In today’s digital age, online platforms are invaluable for reaching potential franchisees. We suggest utilising the following:

Franchise Portals: List your franchise opportunity on popular franchise directories and portals.
Social Media: Use targeted ads on platforms like LinkedIn, Facebook, and Instagram to reach professionals who fit your ideal franchisee profile. As well as consistently talking about your franchise opportunity in your overall marketing strategy.
Your Website: Create a dedicated franchise section on your website with detailed information, success stories, and a clear call-to-action for interested candidates to get in touch.

Attend Franchise and Business Exhibitions

Franchise and business exhibitions are excellent venues to meet potential franchisees face-to-face. These events attract individuals specifically interested in franchise opportunities. Make sure to:

Prepare Professional Materials: Bring brochures, business cards, and other promotional materials.
Engage with Attendees: Be approachable and ready to answer questions. Follow up with leads promptly after the event.
Present at Seminars or Workshops: Position yourself as an industry expert by hosting seminars or workshops at these events.

Network within Industry and Business Circles

Tap into your existing network and industry connections to find potential franchisees. Consider:

Referrals: Ask your current franchisees, business associates, and suppliers for referrals.
Industry Associations: Join industry associations and attend their events to connect with potential franchisees.
Professional Networking Groups: Participate in local business networking groups such as BNI (Business Network International) or chambers of commerce.

Use Professional Franchise Consultants

Franchise consultants specialise in matching potential franchisees with franchise opportunities. They can help you:

Reach a Wider Audience: Tap into their network of pre-qualified candidates.
Streamline the Process: Benefit from their expertise in screening and evaluating potential franchisees.
Save Time and Resources: Let them handle the legwork, allowing you to focus on other aspects of your business.

Implement a Robust Screening Process

Once you have attracted potential franchisees, it’s crucial to have a rigorous screening process to ensure they are the right fit. Your process should include:

Application Form: Collect detailed information about their background, experience, and financial situation.
Interviews: Conduct multiple rounds of interviews to assess their suitability and alignment with your brand. Use your existing team to support you with this too.
Due Diligence: Verify their financial information, conduct background checks, and speak with their references.

Provide a Realistic Preview

Give potential franchisees a realistic preview of what it’s like to run your franchise. This can include:

Discovery Days: Invite them to spend a day at an existing franchise location.
Meet the Team: Arrange meetings with key members of your team and existing franchisees.
Operational Insights: Share detailed insights into daily operations, challenges, and opportunities.

Therefore, finding the right franchisees is a critical step in expanding your business. By defining your ideal candidate, crafting a compelling franchise offer, and leveraging both digital and physical platforms, you can effectively attract and select franchisees who will drive your business to new heights. Additionally, networking strategically and implementing a thorough screening process will further enhance your ability to find the best match. Remember, the right franchisee is not just an investor but a partner who will uphold and enhance your brand’s reputation. Thus, both parties need to feel confident that the franchise opportunity is the right fit.

Need help with franchise recruitment? Chat with us.

Franchise FAQS: How much will it cost to franchise my business?

If you have been asking “how much it will cost to franchise my business” – the answer is “it depends.”

What do franchising costs depend on?

How quickly you want to grow a franchise network.
How much professional advice you need.
How much expertise and time you and your team have to do elements of the work yourself.

Franchising your business in the UK can be a complex but rewarding process. The franchising costs and essential elements involved include various one-time initial expenses.

Here is what you can expect as initial franchising costs (all ex-VAT) if you were to use specialist advisors:

Initial Franchise Model Development:

Hiring a franchise consultant to:

Run a business assessment and franchise feasibility study

And then help develop a detailed business plan outlining:

The franchise model
Financial projections
The growth strategy
A next steps action plan

The cost of this via Ashtons Franchise Consulting is £2,950 (at the time of writing, subject to change).

Franchise Development Programme:

The Initial Franchise Model Development will have reviewed the potential routes and financial modelling. It will have carefully thought through the areas of sensitivity and decided franchising is right for the business. The next steps are to develop, and put in place, the necessary infrastructure elements. This includes producing relevant documentation to be able to offer an attractive, ethical franchise opportunity.  This stage incurs the bulk of franchising costs and includes:

Creating comprehensive disclosure and sales documents (a Franchise Information Memorandum, a Franchise Prospectus and Financial Illustrations) is good practice.
Developing extensive Operating Manuals for franchisees covering all aspects of the business.
Building an initial marketing plan and strategy to attract franchisees. Establishing an ideal franchisee profile, creating copy and content for webpages, adverts, PR, and social media posts.
Establishing a robust “recruitment process” and relevant documentation. For instance, application forms, call and email questions / scripts, business plan templates and cashflow forecasts. Furthermore, these are used to impress potential candidates, and to enable them to feel confident about making a decision.
Designing frameworks and plans for onboarding, training, and supporting franchisees.

Bespoke development programmes with Ashtons Franchise Consulting cost between £5,000 and £16,500.

Marketing Costs:

To attract new “customers” any business owner should willing to invest in marketing. A franchisor’s customers are its franchisees. Accordingly, only by testing and measuring different channels of advertising will it become clear of what works for your specific business. Franchise directories offer advertising listings and email campaigns to their databases. Or it may be that you choose to advertise within your industry to find potential candidates. The cost to franchise, includes the cost of finding a franchisee, which can be paid back from part of the incoming initial franchise fees. The industry average cost is about £1,000 per new franchisee, but this is highly dependent on sector, franchise fee and how much interest there is in the opportunity.

Legal Fees:

This involves a franchise lawyer to create a Franchise Agreement and other legal documentation such as a key point summary, a confidentiality agreement, an intent to proceed deposit letter and a review of all documents issued to potential franchisees.

The costs with Ashtons Legal are £6,000 for a full franchise agreement package and £2,500 for a shorter-form pilot agreement. (Prices correct at the time of writing, subject to change.)

Trademark Registration:

It is vital to ensure you have protected your brand and intellectual property.

Costs with a reputable trademark lawyer start from around £500, dependent on how many countries and classes you need protection in.

You should also think about the ongoing cost to franchise, covering:

Initial and ongoing training for franchisees.
Providing support, monitoring, and managing the franchise network.
National and regional marketing costs.
Ongoing costs for recruiting new franchisees.
Software and systems to manage the franchise network.

In summary, Franchising can be a highly effective way to expand your business, but it requires careful planning, investment to cover the cost to franchise, and ongoing management. Consulting with professionals who specialise in franchising is highly recommended to navigate the process successfully.

We tailor all our consultancy meaning that you only pay for what you actually need. Get in touch with us to understand your specific costs.

Franchise FAQS: What will a franchise development consultant do for me?

There are two ways to define a franchise consultant:

A franchise consultant can provide valuable expertise and guidance to individuals looking to invest in a franchise, pointing them in the right direction so they choose a franchise opportunity that is right for them.
A franchise “development” consultant helps a business owner to transform their business into a franchise model and opportunity (this is what we do at Ashtons Franchise Consulting).

A good franchise development consultant will offer franchising help to the business owner by:

Establishing a bespoke, commercial model that will work for them and be attractive to potential franchisees.
Running a franchise feasibility study to ensure the business is suitable to be franchised.
Developing a strategy and financial plan to define the franchise’s structure, operation, and future requirements.
Building an ethical franchise opportunity that stands out and attracts suitable candidates.
Teaching the principles of franchising.
Creating necessary deliverables and bespoke documentation to maximize their chances of success.
Providing ongoing mentoring and advice, empowering them to sustain their franchise independently.

The role of an experienced franchise consultant is to advise and assist their clients, to give them options and sometimes to challenge. They will help them to overcome the costly frustration, time and expense and lost opportunity that can come with lack of preparation and planning. They will teach and guide them through the things they don’t know they don’t know and stay fully engaged at every level to help achieve their expansion dreams.

It is vital for the business owner (the franchisor) to offer a genuine opportunity to potential franchisees. They must also ensure that potential candidates have sufficient information to make an informed decision. Additionally, any information provided must be released carefully to avoid potential claims of misrepresentation.

The real secret for business owners, in working with a franchise consultant, is to receive franchising help, to understand what it takes to be a great franchisor. As a result, they can build a network of franchisees with whom they can have a professional and business-like relationship in a profitable “win-win” manner.

Looking for a franchise consultant? Talk to us – we have a team of consultants with many years of franchising experience!

How do I advertise my franchise?

Advertising your franchise effectively requires a versatile approach that utilises various platforms and strategies to reach potential franchisees. Here’s a step-by-step guide to help you advertise your franchise successfully:

Develop a Comprehensive Marketing Plan

Start with a detailed marketing plan that outlines your goals, target audience, budget, and the strategies you’ll use to reach potential franchisees. Your plan should include:

Goals: Define what you want to achieve with your advertising efforts (e.g., number of leads, franchise sales).
Target Audience: Identify the demographics and attributes of your ideal franchisee and remember to talk to this avatar in all your marketing activities.
Budget: Allocate a budget for your advertising activities, including online and offline efforts. Be prepared to try different approaches, monitor the success and have a confidence to stop some if they aren’t delivering.

Create a Strong Online Presence

Your online presence is crucial for reaching potential franchisees. Ensure your digital footprint is professional and informative.

Website

Dedicated Franchise Section: Create a detailed section on your website specifically for potential franchisees. Include information about the franchise opportunity, investment requirements, training, and support. In addition, case studies and other material to bring your opportunity to life.
SEO Optimisation: Optimise your website for search engines to ensure it appears in relevant search results.
Contact Form: Include an easy-to-use contact form for interested candidates to get in touch with you. Additionally, make it as easy as possible for them to make contact with the right person in your business.

Social Media

Social Media Profiles: Maintain active profiles on the most relevant social media channels for your business, for instance, LinkedIn, Facebook, Instagram, and X.
Targeted Ads: Consider using paid social media advertising to target specific demographics and geographic areas.
Engaging Content: Share success stories, behind-the-scenes looks, and informational posts about your franchise opportunity to really bring it to life.

Utilise Franchise Portals

List your franchise on popular franchise directories and portals. These platforms attract individuals actively seeking franchise opportunities.

Franchise Directories: Websites such as What Franchise, Franchise Local are great places to list your opportunity.
Enhanced Listings: Invest in enhanced listings or featured placements to increase visibility and monitor the results.
Email Marketing: Some portals offer the ability to send out targeted emails to their database, moreover, this can be a great way to promote your franchise opportunity.

Leverage Email Marketing

Email marketing can be a powerful tool to reach potential franchisees who have shown interest in franchising or similar businesses.

Build a Mailing List: Collect emails through your website, social media, and events.
Regular Newsletters: Send out regular newsletters with updates, success stories, and information about the franchise opportunity.
Personalised Emails: Use personalised email campaigns to follow up with leads and provide them with additional information. Indeed, this is a great way to nurture interested people.

Attend Franchise and Business Exhibitions

Participating in franchise and business exhibitions can help you connect with potential franchisees face-to-face, which is so important.

Stand Presentation: Set up an attractive stand with professional marketing materials.
Networking: Engage with attendees, answer their questions, and gather contact information for follow-up.
Workshops and Seminars: Host informational sessions or workshops to present your franchise opportunity in detail.

Leverage Public Relations and Media

PR can help build credibility and awareness for your franchise opportunity.

Press Releases: Send press releases to industry publications and local media about new franchise openings, milestones, and success stories.
Media Coverage: Seek out opportunities for media coverage, such as interviews, feature articles, and guest blog posts and podcasts opportunities.
Industry Publications: Advertise in industry-specific magazines and websites that cater to potential franchisees.

Implement Retargeting Campaigns

Retargeting ads can help you stay top-of-mind with individuals who have previously shown interest in your franchise.

Retargeting Ads: Use retargeting ads on platforms like Google Ads and Facebook to reach people who have visited your website or engaged with your content.
Custom Audiences: Create custom audiences based on their behaviour and interactions with your digital properties.

Create Engaging Content

Content marketing can establish you as an authority in the franchising space and attract potential franchisees.

Blog Posts: Write informative blog posts about franchising, industry trends, and your franchise opportunity.
Videos: Produce videos showcasing your franchise model, success stories, and testimonials from current franchisees.
Webinars: Host webinars to provide in-depth information about your franchise opportunity and answer questions from potential candidates.

Monitor and Optimise

Continuously monitor the performance of your advertising efforts and make adjustments as needed.

Analytics Tools: Use tools like Google Analytics, social media insights, and email marketing analytics to track the performance of your campaigns.
Feedback Loop: Gather feedback from leads and franchisees to understand what attracted them to your franchise and refine your advertising strategies accordingly.

Conclusion

Effectively advertising your franchise requires a strategic, multi-channel approach. By building a strong online presence, leveraging franchise portals, attending exhibitions, and using targeted advertising, you can certainly attract the right candidates. Additionally, working with franchise consultants and utilising content marketing will further enhance your reach. Continuously monitor and optimise your efforts to ensure you’re getting the best results from your advertising campaigns.

How Much Should I Charge Franchisees?

This is a very common question that budding franchisors ask us. Given the resources and infrastructure to support a franchise network, that is understandable and an important consideration when deciding if franchising your business is a viable, profitable, and sustainable option.

Franchisors typically charge franchisees various fees. Hence franchisees pay an upfront fee for the rights to use the brand, trademark, and operating systems. They also incur ongoing fees for support structures, marketing, and technology.

Franchise fees include:

Initial Franchise Fee

A one-time upfront fee paid by franchisees to join a franchise system. When determining this fee, consider your brand equity and reputation, market demand, and the costs involved in supporting your franchisees as they prepare and launch their business. These costs may include training programs, funding, business planning assistance, and helping source and secure premises.

Management Service Fees [MSF]

This is typically charged as a percentage of sales revenues on an ongoing monthly basis in arrears. MSF is payable for the ongoing operational support that franchisors provide to their franchisees, such as head office support services, franchise managers and communications systems.

Marketing Fees

This accounts for contributions to a national or regional marketing fund. Marketing fees will be based on the scope of marketing efforts and the benefits to franchisees. Consider the fee level in terms of the marketing activities you, as the franchisor, will provide versus any local marketing responsibilities directly attributable to franchisees.

Many franchisors will have a mix of marketing that they manage and control to ensure brand messaging is consistent across the network. For example, this can include digital & social media and seasonal promotions alongside local marketing initiatives that franchisees manage and execute. For example, flyers, events, and relationship management.

Other Fees – depending on your business model and operational requirements, you may also consider charging other fees to franchisees. This could be, for instance, a technology fee for access to and use of your bespoke / required technologies, software applications, transaction fees and renewal fees.

In all cases, when setting franchise fees, it is recommended that franchisors complete detailed analysis of your business costs, franchise operations costs, and support structures. It is also desirable to benchmark your proposed franchise fees versus your industry sector and competitors to ensure your fees are competitive and justified. Explaining the value and support franchisees receive in return for various fees is important, as it helps potential franchisees understand the benefits that they will receive from you as the franchisor and their return on investment.

What Franchise Support Do I Need to Provide to Potential Franchisees?

In essence, franchising is a business partnership that is underpinned by franchisors delivering a comprehensive range of support services to their franchisees. In practical terms, support services should be designed to deliver operational excellence across the network, and build sustainable, profitable, high performing businesses in every franchise location.

Therefore, franchisors must be prepared to support franchisees throughout the lifetime of the business partnership, starting with prospect franchisees to new business launches, and ongoing support designed to achieve mutual reward.

The initial impression you create with prospect franchisees will set the tone for your relationship with them throughout the journey.

In any event, there is a range of documents and actions that will give prospects confidence in your professionalism and ability to help and support them to make the decision to join your franchise. These include:

Franchise Information Memorandum (FIM) or Franchise Disclose Document (FDD)

The FIM is the most important document as it details information about the franchisor, the business background, the franchise operating platform, financial statements, franchise fees, obligations and much more. The FIM supports prospect franchisees to assess the business, the opportunity and ultimately make an informed decision.

Initial Training & Support

It is essential that franchisors deliver comprehensive training on all aspects of the business operations to franchisees. You should prepare a detailed training programme for franchisees, delivered by suitably experienced people within your business, designed to give franchisees in depth, hands-on learning opportunities so they are ready to operate the business on a day-to-day basis, using the franchise system. This not only ensures that your franchisees are well-prepared to run the business successfully from day one but has the added benefit of ensuring your franchise network operates consistently and seamlessly to deliver your products & services.

Operations Manuals

A comprehensive Operations Manual is essential as a support tool for your franchisees. The manual should include your business processes, procedure and guidelines on daily operations and best practice. Your Operations Manual provides a reference tool to maintain consistency and quality across your network. It can also provide a structure for your initial franchisee training programme and a reference point – especially in the pre & post launch period as well as helping with ongoing staff training.

Marketing Support

Another franchisee support criteria is marketing, PR and business development. A carefully planned and executed launch marketing campaign will support franchisees as they open for business. Your marketing support will typically be focused on the franchisee’s territory and include a range of activities including digital marketing, branding, launch promotions, PR and potentially some traditional activities such as flyers and advertisements.

Site Selection & Lease Negotiation

If your franchise operation is premises based, then it is prudent to support franchisees to search and select suitable property. Your experience and guidance on choosing the right location plus support with lease negotiations will help ensure that franchisees select appropriate and profitable locations.

How Can I Protect My Business Ideas When Franchising?

Any business considering embarking on franchising their business, is rightly concerned about protecting the brand. After all, you have developed and grown your business to the point where franchising is a genuine option for further growth and brand expansion.

There are various documents and management tools that you can use to protect your business and brand reputation when franchising. These include:

Legal Agreements and Contracts

Franchise Agreement: Ensure your franchise agreement includes clear terms about the use of your intellectual property, confidential information, and trade secrets. A bespoke agreement that aligns with your business operations is critical. Ensure you use a British Franchise Association approved franchise solicitor to prepare your agreement.

Non-Disclosure Agreements (NDAs): Require franchisees to sign NDAs to legally bind them from disclosing proprietary information. NDAs are particularly useful in the pre-contract, recruitment stages when you and your prospect franchisees are deciding whether to progress.

Intellectual Property Protection

Trademarks: Register your brand name, logo, and any distinctive marks with the appropriate intellectual property office. Use a specialist trademark attorney to ensure your business is protected by trademark/s.

Patents: If you have unique products or processes, consider obtaining patents to legally protect them.

Copyrights: Protect your marketing materials, training manuals, and other creative content through copyright registration.

Training and Operational Manuals

Detailed Manuals: Create comprehensive operations manuals that outline all aspects of running the franchise, ensuring consistency and protection of your methods. Keep manuals under review and update content as the business innovates and evolves.

Controlled Access: Limit access to sensitive information to only those who need it and use digital rights management tools to track usage.

Monitoring and Compliance

Franchise Manager: as soon as finances allow & you have onboarded your founder franchisees, appoint a Franchise Manager to oversee your franchise network and business operations. This could be an existing employee who has the business knowledge or a franchise specialist who you recruit for the role.

Regular Audits & Meetings: Conduct regular audits and inspections to ensure franchisees comply with the franchise agreement and protect your business methods.

Hold regular franchisee meetings – once you have a cohort of franchisees and arrange an annual franchise conference to share successes, future plans and recognise high performing franchisees.

It is also best practice to develop a franchisee panel who represent the franchise network at meetings with you, the franchisor on a quarterly basis.

Mystery Shoppers: consider using mystery shoppers to monitor franchisee operations and ensure they adhere to your standards and practices.

Franchisee Selection and Training

Careful Screening: Recruiting franchisees can be time-consuming but a very important task. Take time to select franchisees who meet your franchisee profile, have the skills & experience necessary to represent your brand and succeed, are trustworthy and have integrity. Franchising is a long-term business relationship and as such, it’s crucial that you select only those individuals who you are comfortable with operating your brand.

Ongoing Training: Provide continuous training to reinforce the importance of protecting your business ideas and maintaining brand standards. Arrange training sessions on specific business functions – sales, new technology, new products or services, administration, etc so that the franchisee network is fully onboard and delivers consistency across the network.

Customer Service Feedback

A practical solution to protecting your business, is to promote customer service feedback. Use review tools such as Google Reviews, Trustpilot and Trustist to monitor customer experience with franchisees. Consumers can provide excellent, truthful insights to their experiences and their feedback on franchisees can often be useful for rewarding superior performance or an early warning sign highlighting areas that need improvement, additional training and careful monitoring by your Franchise Manager.

Enforceability

Legal Action: Be prepared to take legal action against franchisees who violate the terms of your agreements to set a precedent and protect your business. As the franchisor, you must be prepared to protect the brand reputation for the benefit of every franchisee.

Insurance: Consider insurance options that can provide coverage in case of intellectual property theft or misuse.

Need some advice and guidance to protect your business ideas? Reach out to us – we are always happy to chat.

Why should I join the British Franchise Association (BFA)?

Joining the British Franchise Association (BFA) can offer numerous benefits for franchise businesses. Here are several reasons why becoming a member of the BFA can be advantageous:

Credibility and Trust

Being a member of the BFA adds a layer of credibility to your franchise. The BFA is recognised as the authoritative body for franchising in the UK. Membership signals to potential franchisees, customers, and business partners that your franchise adheres to high ethical standards and best practices.

Networking Opportunities

The BFA provides numerous networking opportunities through events, seminars, and conferences. These gatherings allow you to connect with other franchise professionals, share insights, and learn from the experiences of others in the industry.

Access to Resources and Support

Membership grants you access to a wealth of resources, including:

Educational Programs: Workshops, seminars, and courses designed to help you understand and navigate the complexities of franchising.

Legal and Financial Advice: Expert advice on legal and financial matters specific to franchising.

Research and Reports: Access to industry research, reports, and market data that can therefore inform your business strategy.

Marketing and Promotion

The BFA offers various platforms to promote your franchise:

Directory Listings: Your franchise will be listed in the BFA’s directory, making it visible to potential franchisees on their website.

Awards and Recognition: Opportunities to participate in the BFA’s annual awards thus enhancing your brand’s prestige and visibility.

Advocacy and Representation

The BFA represents the interests of its members to government bodies, regulators, and other key stakeholders. This ensures that the concerns and needs of the franchising community are considered in policy-making and regulatory decisions.

Ethical Standards and Best Practices

By joining the BFA, you commit to adhering to its code of ethics and standards. This helps to ensure that your franchise operates with integrity and transparency, fostering trust and confidence among franchisees and customers.

Educational Resources for Franchisees

The BFA provides educational resources not only for franchisors but also for your franchisees. This helps ensure that your franchisees are well-informed and better prepared to succeed, ultimately benefiting the entire franchise network.

Dispute Resolution Support

The BFA offers support for dispute resolution between franchisors and franchisees. Moreover, this can be invaluable in maintaining harmonious relationships and addressing conflicts in a fair and efficient manner.

Benchmarking and Best Practice Sharing

Being part of the BFA community allows you to benchmark your performance against other franchises and share best practices. Indeed, this continuous learning environment helps you stay competitive and innovative.

Brand Affiliation

Aligning your brand with the BFA can enhance your reputation. The BFA’s logo is a mark of quality and professionalism in the franchising industry. Displaying this logo will therefore instil confidence in potential franchisees and customers.

Conclusion

Joining the British Franchise Association offers a multitude of benefits that can significantly enhance the credibility, visibility, and operational effectiveness of your franchise. From networking opportunities and access to resources to advocacy and ethical standards, BFA membership can play a crucial role in the growth and success of your franchising business.

Why should I attend franchise exhibitions?

This question is really two-fold. Firstly, why should someone looking to buy a franchise (a potential franchisee) attend an exhibition? Secondly, why should someone who wants to franchise their business (a potential franchisor) attend a franchise exhibition? Either way, they are unbelievably valuable – let’s take a look.

Buying a franchise

You have decided that acquiring a Franchise from an established and reputable company is the best and safest route into business ownership – now you need to decide on the right type of franchise in the right area of business for your background and financial means.

Franchise exhibitions, especially those held by the British Franchise Association, are the best way of meeting and talking to the widest range of franchise opportunities. Exhibitors will be established Franchisors, often with Franchisees on the stand, who can introduce you to their brand, and their opportunity, as well as the banks and business consultants who can guide and advise you.

There are also a number of seminars to attend that will cover all aspects of Franchising, from the initial purchase to the development opportunities and long-term prospects, as well as workshops on best practice, trends, and legal considerations.

Quite often exhibitors will be making exclusive deals or discounts at exhibitions which will not otherwise be available or giving early access to new opportunities.

Gathering brochures and detailed information on Franchise opportunities allows you then to spend time comparing the various franchise systems, the support structures and overall business models, and start to make an informed decision on the way forward.

Buying a Franchise business may the single most important financial decision of your business life; it is worth taking time and using the resources provided by Franchise Exhibitions to ensure you make the best decision.

Franchising your business

Attending a franchise exhibition offers numerous benefits for someone looking to franchise their business. It provides valuable market insights, helping you understand current trends, consumer preferences, and industry benchmarks, which can therefore aid in positioning your franchise effectively.

The event also offers excellent networking opportunities, allowing you to meet potential franchisees, industry experts, and other franchisors, which can be crucial for building support and partnerships. By exploring other franchise stands, you can conduct a competitive analysis to see how your business compares and identify areas for improvement.

Additionally, many exhibitions feature workshops, seminars, and presentations by industry professionals, offering practical advice on franchising best practices, legal considerations, and marketing strategies. You can also connect with suppliers, service providers, and consultants who can assist with setting up and managing your franchise system.

Lastly, interacting with attendees and potential franchisees provides direct feedback on your franchise concept, helping you refine your approach and better understand market demand.

Want to attend the next franchise exhibition? Visit our franchise events page for more information and to book tickets.

Why do I need a franchise legal agreement?

When setting up a franchise network it is imperative that the franchisor puts in place a robust legal agreement.

The legal agreement governs the relationship between the franchisor and franchisee. It sets out the legal obligations of each party and the key terms of the franchising relationship.

Whilst there is no legislation stipulating what terms need to be included, typically a franchise agreement will set out;

the rights granted by the franchisor to a franchisee
the term of the agreement including any renewal rights and conditions with which the franchisee must comply in order for the franchise agreement to be renewed
the obligations of both the franchisor and the franchisee
the circumstances in which a franchisee can sell its franchised business
a personal guarantee and indemnity given by the owners of the franchisee guaranteeing compliance by the franchisee of its obligations under the franchise agreement
the circumstances in which the agreement can be brought to an end early
the obligations of the franchisee on termination of the franchise agreement (including post-termination restrictive covenants).

It is important that the franchise agreement is carefully crafted around the requirements of each specific franchise network. Therefore ensuring that any issues that a franchisor could face are adequately dealt with, enabling the network to grow and thrive.

The franchise agreement must be fair, but the obligations on the franchisee are more comprehensive than those imposed on the franchisor. This is to ensure that the franchisor’s brand and system, which are licensed to the franchisee, are adequately protected and ultimately benefits not just the franchisor but the network as a whole.

We can prepare your franchise agreement – contact us to find out more.

What is the difference between licensing and franchising?

There is no legal definition of either licensing or franchising.

Under a franchising arrangement, the franchisor will typically license to a franchisee the right to use the franchisor’s trade name and brand, know how, any technology and its business system.

Whilst licensing arrangements can take many forms, the obvious comparison in this context is a brand license agreement under which a licensee is granted the rights to use a particular trade name or brand for a specific purpose.

In both cases the franchisee or licensee will pay fees in return for the rights being granted to them.

The key differences are:

the franchisor is licensing the business as a whole;
the level of control that a franchisor wishes to exert over the way that a franchisee operates its business. The franchisor provides its franchisees with a Manual detailing exactly how the business should be run, with which the franchisee must comply. In a brand license agreement whilst there may be stipulations on what the trade name, trademark or other branding can be used for, there are no stipulations on how the business is operated.

Unsure if franchising or licensing is right for your business? Chat with us and we will help you to determine what will be best for your business.

Should I register my trademark when setting up a franchise?

It is critical that anyone looking to franchise their business registers the trademarks which they are looking to licence to the franchisees.

Whilst owners of unregistered trademarks are afforded a level of protection against third party infringement, where a trademark is registered it will be easier to take action against any infringement, as registration provides evidence of the trademark holders rights to such trademark. As the network grows then third-party infringement becomes more likely.

When a franchisor is negotiating with a potential franchisee and shares a draft franchise agreement for legal review, the lawyer will likely verify if the trademarks being licensed are registered or at least in the process of registration. If the franchisor cannot prove they have the rights to license these trademarks, potential franchisees may be unwilling to pay for their use.

Get in touch with us for further advice on your trademark.