What is a Franchise?
The British Franchise Association defines franchising as the following:
“Business format franchising is the granting of a licence by one person (the franchisor) to another (the franchisee), which entitles the franchisee to own and operate their own business under the brand, systems and proven business model of the franchisor.
The franchisee also receives initial training and ongoing support, comprising all the elements necessary to establish a previously untrained person in the business. The legal contract – the Franchise Agreement – between the two parties, sets out the obligations and rights of both franchisor and franchisee and determines how long the franchise arrangement will last usually 5 years but can be longer. This will include renewal options.”
The principle is simple.
The franchise sector is expanding with some amazing results and now forms an essential part of the British economy.
Some facts about franchising