What is a franchise
For clarity, the definition of Business Format Franchising as outlined by the British Franchise association is included below:
Business format franchising is the granting of a license by one person (the Franchisor) to another (the Franchisee), which entitles the Franchisee to trade as their own business under the brand of the Franchisor, following a proven business model. The Franchisee also receives a package, comprising all the elements necessary to establish a previously untrained person in the business and to run it with continual assistance on a predetermined basis (including a predetermined agreement length, with renewal options).
Additionally, the Franchisee has the opportunity to develop and grow a saleable asset that they can “realise” through the sale of their business to a purchaser, previously approved by the Franchisor.
In spite of continuing economic pressures on the economy as a whole, franchising in the UK continues to expand. This year we see: