Growing your business through franchising - Ulster Bank

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Types of Franchise Investment Franchise Having invested a substantial amount of capital the franchisee retains overall control, employing a management team and staff to run the business on a day-to-day basis. Executive Franchise This is based on providing the type of services usually described as “white collar” or professional. Retail Franchise The franchisee will buy the right to run one or more retail outlets, employing their own staff and displaying and selling only those products or services that the franchisor approves. Distribution Franchise The franchisee will be working from a depot owned and run by the franchisor, operating their own rounds and delivering products approved by the franchisor within a defined area. Depot Franchise In this instance, the franchisee runs their own depot, servicing a mixture of trade and retail customers. Job Franchise This is usually a one-person business that the franchisee could run from own home. You will find that a wide range of different types of business use the various franchise methods described above. Examples ■ Building services ■ Catering – from fast food restaurants to hotels ■ Cleaning services – both commercial and domestic ■ Direct selling and distribution ■ Domestic services such as kitchen and bathroom ■ Employment and training agencies 4
Key advantages 1 Reduced Capital Risk Increased potential to expand as your business can use the capital of your franchisee’s so your own financial commitment is reduced. 2 Ability to Expand Rapidly Since the franchisee’s will deliver and manage their own individual operations. Your franchisee recruitment programme should maintain your growth schedule with less capital outlay from you. 3 Access to local marketing knowledge and contacts Which is part of what your investment franchisees bring. 4 Removes the need for additional staff and property locations You will need fewer staff at head office and in the field than a conventional business because the franchisees are self-motivating. 5 Possibility for international expansion The franchise system lends itself particularly well to international expansion. The benefits of opening in a foreign country through a master franchisee are similar to those of appointing franchisees in your own domestic market but of course, on a much larger scale. Key criteria for success ■ Clear identity ■ Proven track record ■ Established gap in the market for your product and key customer targets ■ Experienced and efficient management support systems ■ Defined operational methods ■ Healthy Profit Margins ■ Strong marketing and branding programmes ■ Established Business System ■ Easily and quickly transferable knowledge
Page 1 and 2: “Coming together is a beginning K
Page 3 and 4: ...Like Ford our people understand
Page 5: “What is franchising” Franchisi
Page 9 and 10: Areas that you and your management
Page 11 and 12: Helpful Sources of Advice Ulster Ba

Growing your business through franchising - Ulster Bank

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