So what exactly is a franchise then?

Simply put a franchise is a licensing relationship between yourself and another business. The franchise (other business) would grant you (the third party) permission to operate under their trademark.

In layman's terms as a franchisee you would become a part of the franchise business, operating under not only their name, brand and business model, but also their rules, ethics and interests.

A good example of this would be perhaps the most famous franchise in the world, which many don't even realize is a franchise. McDonald's have taken their own brand of fast food restaurant and  packaged it up into a neat little package, especially for you. Think of it if you will as a 'business in a box'.

When you buy into a McDonald's franchise, you will be allowed to set up your own McDonalds store, server Big Mac's to your customers and best of all benefits from the multi million dollar marketing campaigns that McDonald's run year round, all over the world.

As you can imagine, if your intention was to start a business running a burger shop, you may find it a lot more difficult going at it alone without the clout of an industry leading name backing you.

After all, if you fancy a burger and to your left you have 'Joe Bloggs Burgers' and to your right you have 'McDonalds' which one are you most likely to go to?

What is a franchisee then?

Generally the franchisee is going to be you. A franchise or 'franchisor' grants you permission to act as a part of their business as the franchisee.

Does this mean you now work for the franchise?

No, not exactly. Typically before you are able to buy any franchise business you are required to own (or co-own) a limited company in the UK. You will then run your own business (you are the owner) however you must comply with the rules that the franchise has set out for you in the 'franchise agreement'.

Wait, what's a franchise agreement?

The franchise agreement is a contract between your business and the franchise business which lays out exactly what is expected of both parties.

Although they differ greatly from one franchise to the next, typically they will cover things such as costs, best practices,  commitments and more.

It's important to remember that the franchisor (the franchise) has to make absolutely sure that every single franchisee they have operates their business to the exact same model as the original, to the point that it's indistinguishable. They know that their business model works because they have already had success with it, and to ensure you share this success you're going to need to follow in their footsteps!

What disadvantages can owning a franchise have?

Great question, as we discussed previously there isn't actually too much of a difference between starting a business from scratch and buying into a franchise, aside from the benefits of using the leverage you get from an already established business.

However there are limitations that some people might find imposing. For example it's not unusual that the franchisee has to place orders for things such as stationary, advertisements or any other disposable items through the main franchise business. Whilst this is understandable, as the franchise is going to want to ensure that everybody gets the exact same products and most importantly the customer get the exact same experience. It does require you (the franchisee) to put your trust in the franchise that you are getting a good deal with the various suppliers they use.

If the franchise is any good they should have strict quality controls and bags of pride in everything that gets produced. They should also be constantly seeking the best deals to make their business as streamlined and efficient as possible and by proxy yours as well.

What about the advantages of buying a franchise?

Actually, there are quite a few more than we have already mentioned. One of the most exciting of which is that it takes some of the pressure off you (the business owner) in regards to being "everybody" in the business. What this means is that if  you were to start a business on your own from scratch, you have to be the owner, the website guy/girl, the designer, the marketing person, the workforce, the sales person and just about everything else that any good business needs.

Even if you can fill all of these roles, it's going to leave you very little time to focus on the important things like planning ahead and trying to actually grow your business.

What makes a franchise great is that lots of this work is being done for you already by professionals specifically to allow you to get on with what you do best. You don't need to worry if what you're doing it going to be profitable because somebody has already tried everything out and found the best way of doing it already.

Going back to our "business in a box" analogy, you might consider that you are being handed a box of ingredients and a recipe to make a gourmet meal. You can trust the recipe because you know that a chef has already cooked the same recipe and the result was good enough that that wrote a guide on how to do it again. You have everything you need, the only thing that's missing is you!

Ok, I'm sold, what are some of the best franchises to buy right now?

There's probably a lot more available that you might think!

The "best" one for you really depends on what budget you have available. A franchise can range from low cost (>£10k) all the way up to high-end (>£millions).

Rather than listing several from each price range here, you might want to check out a reputable franchise directory such as Franchise Direct. They have a huge list of all different types of franchises in each different industry and every price range.

Alternatively you could check out the Train Learn Go package

If you're looking for a low-cost franchise that's ideal for somebody starting out in the world of entrepreneurship then look no further.

Our business model is designed to take all of the guess work out of running an industry leasing personal training business and get you set up right away, finding clients, being payment regularly via direct debit and issuing minimum 3 month contracts to your clients. 

If you want to find out a bit more about the Train Learn Go package you can read about what's included here.