Franchising - A kosher concept

Franchising: A kosher concept!

Nigel Toplis, Managing Director of Recognition Express and ComputerXplorers reminds us of a few (rather important) positives that we should be shouting about to others…!!

My old guv’nor Moshe Gerstenhaber (founder of Kall Kwik) reiterated that franchising is not an industry nor is it a business, but rather “a practical marketing concept employed for the effective distribution of products and/or services.” I wholeheartedly agree, but franchising is also a lot more and it is important we convey this to the public: The more people know about the great things about franchising, the wider pool of potential franchisees.

If it is done right, franchising is an effective mixture of conformity and individuality where the skill set, drive and ambition of the franchisee is complimented and enhanced by the business systems, tools, collateral and support structure of the franchisor.

Franchising offers a number of key benefits to people who want their own business:

•    A tried and tested system: Good franchisors continually develop and refine their business system to match changing market conditions and opportunities

•    Brand value: Many franchised companies and brands in the UK are international household names

•    Corporate backup: The franchisor will provide proven operating methods, know-how, corporate identity, trade-marks and help with everything from marketing to recruitment

•    Help to exit the system: Franchisors will often help to find new people to buy-out existing franchisees

Furthermore, franchised businesses have a much higher success rate than ‘private’ start-ups (see latest NatWest/bfa survey) with over 90 per cent claiming to be profitable.

Then of course there is the desire for a new way of life and franchising certainly offers an increasingly attractive lifestyle option where you are in control, where your rewards match your own effort and where you know that you can make a difference.

It is certainly a practical marketing concept and definitely a direct means of creating a lifestyle choice.

Nigel Toplis is Managing Director of Recognition Express (Franchisor of the Year) and ComputerXplorers, and was also the immediate past Chairman of the bfa. He is also a fellow of Lancaster University.