Impact-logo


commercial franchises with social impact beyond job creation
 
  • Adult Education
    • Adult Education
    • Pitman Training
    • Tutor Doctor
  • Care
    • Care
    • Ableworld
    • Bluebird Care
    • Caremark
    • Home Instead
    • Right at Home
    • SureCare Community Services
  • Nurseries
    • Nurseries
    • Banana Moon Day Nurseries
    • Monkey Puzzle Day Nurseries
  • Employability
    • Employability
    • Ed`s Garden Maintenance
    • Envirocare Grounds Maintenance
    • Esquires Coffee Houses
    • Jaspers Corporate Catering
    • Rainbow International
    • The Zip Yard
    • VIP Bin Cleaning
  • Sport
    • Sport
    • Anytime Fitness
    • Energie
    • Little Kickers
    • Premier Sport
    • Sports Xtra - Coach
    • Sports Xtra Franchise
    • Tatty Bumpkin
    • The Little Gym
    • Tumble Tots
  • Young Minds
    • Young Minds
    • ComputerXplorers
    • Creation Station
    • Jo Jingles
    • Kumon Educational
    • Monkey Music
    • Pyjama Drama
    • Stagecoach
    • Tutor Doctor
  • Start Up
    • Start Up
    • Stages
    • Preliminary Research
    • Contact Franchisor
    • Business Planning
    • Getting Advice
    • Funding
    • Personal Reflection
  • About
    • About
    • What are Impact Franchises?
    • What is a Franchise?
    • British Franchise Association
    • UK Franchises
    • Advantages and Disadvantages of Franchising
    • Contact Us
    • Email Sign Up

ADVANTAGES & DISADVANTAGES OF FRANCHISING 


Advantages of franchising

These are the perceived advantages:

  • Reduces risk of business failure due to a proven the business concept in the market place. There are statistics which show that significantly less franchises fail in the first 3 years compared with new business start ups.
  • Franchising enables a small businessperson to compete with a big business through economies of scale of the franchise network.
  • Recognised brand - ready acceptance by the consumer of product and services.
  • Support, benefit of experience and training from the franchisor.
  • The above also give advantages over any independent small business competitor.
  • No previous experience in a particular business is necessary for a franchisee to operate it.
  • Speed of start-up
  • Central marketing and research.
  • Sharing of knowledge from other franchisees about what works and what doesn't.
  • Admin systems provided.
  • Territorial rights.


Disadvantages of franchising

These are the perceived disadvantages:

  • Lack of independence - every aspect of the business format is defined and each outlet is operated strictly in agreement with this format.
  • Need for discipline - need to operate a system in which there is little freedom or scope to be creative.
  • Monitoring - franchisor's interest may be seen as intrusive.
  • Cost of start-up - not only is there a licence fee, money is needed for working capital until such time as the business pays the way.
  • Service charges - need to pay these ongoing charges even when you need little support.
  • Reputational risk - each franchisee affects the reputation of the whole system depending on their performance and ability.
  • Responding to the market - tends to be an inflexible method of doing business as each franchisee is bound to operate the business format in a certain way.
  • Lack of enjoyment with the work unless it is something you have a passion for.
  • Failure of the franchisor - the franchisor is vulnerable to financial problems if low number of franchises exist or the franchisor is under-resourced and may not be able to fund the running of the business.

 

Advantages and Disadvantages of Franchising
What are Impact Franchises?
What is a Franchise?
British Franchise Association
UK Franchises
Advantages and Disadvantages of Franchising
Contact Us
Email Sign Up

 

TAG CLOUD

Adults Catering Children Cleaning Community Day Nursery Disability Education Elderly Care Employability Events Ex-Offenders Fitness Gardening NEETs Play Centres Preschool Property Maintenance Retail Sport

BRITISH FRANCHISE ASSOCIATION


In 1977, the major franchise companies in the UK decided to set up their own association. The British Franchise Association (bfa), was formed to act in the interests of the industry as a whole in assessing and accrediting franchising companies as those which meet its criteria for the structure of the franchise business, the terms of the contract between franchisor and franchisee, the testing of the system and its success as a franchise.

On this site, we only feature franchisors who are either:

Full Members of the bfa
Full Members are established franchised businesses with a proven trading and franchising record. They are prepared to have their reputation examined by the bfa, and have an established network of franchisees.

or

Associate Members of the bfa
Associate Members have proven their ability to launch and support at least one franchised outlet for 12 months and are now in the business of building their network. There will be few franchisees whose experience you can research and a short period of time over which the business has been tested.
 
 

  • Impact Franchises Ltd Registered Company 9012222

 
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