Daffy-down-dilly, our award winning sweet shop is now inviting expressions of interest for one of our sweet shop franchises! Interesting? Read on!
Why would you consider buying a sweet shop franchise when you could set up in business on your own?
Well, the biggest clues to your potential success if you buy a franchise are made apparent in The British Franchise Association (bfa) NatWest Franchise Survey 2015. This detailed survey found a record 97% of franchisee-owned businesses reporting profitability with more than half of those saying they were ‘quite’ or ‘very’ profitable. Also a fantastic 91% of franchisees said they were ‘mainly’ or ‘definitely’ satisfied with their franchisor. Franchisee satisfaction has never been higher.
This important Franchise Survey reported that the industry sector in the UK was doing well. And was continuing to prosper with over 50% of franchisees claiming an annual turnover of more than £250,000, showing a continuing upwards trend. Very importantly, the report disclosed that more than 50% of the 621,000 people in the UK working in a franchise operation were in full-time employment. And that the number of franchisee-owned businesses has increased by an amazing 14% in just 2 years.
Another positive sign for success in franchising is that the survey reported ownership changes in franchisee businesses being correspondingly low at just 4.6%. With failure rates much lower than for other small to medium enterprises.
What are the main reasons that franchisees are generally so successful?
Well, one simple reason is that right from the beginning they will normally have been provided with a proven successful template. Which they are obliged to follow with their new business. Along with initial and ongoing support and guidance from their franchisor. The franchisor has a financial interest in the success of the franchisee as well as legal obligations to the franchisee. Which will be detailed in the franchise agreement. Also, the franchisee should have received from the franchisor sufficient comprehensive training and industry know-how to dramatically increase the chances of success in the chosen business. You just don’t have those advantages if you start up on your own in a business that is new to you.
The franchisees’ legal obligations to follow the business model generally tend to keep a franchisee focused on the business plan. And method of operation so that he, she or they aren’t tempted to deviate from what has proven to be a successful business model.
It happens quite often that people starting up on their own, quite understandably, just don’t have the necessary experience or a clear idea of how to set up and maintain a profitable concern. They often get side-tracked. And don’t realise the importance of following a business plan. Whereas a franchisee has a business model to copy and receives regular advice from the franchisor in whose interest it is to help the franchisee stay on track and be profitable.
As a franchisee you have your own business but you’re not actually on your own.
You always have your franchisor to turn to for advice and you should always have been provided with an informative Operations Manual to refer to and follow. All the support and guidance you receive should ensure that your new business gets off the ground quickly and that you move into profitability much sooner than starting from scratch on your own.
If you’re considering going into business for yourself and are looking for a retail franchise that is enjoyable and satisfying to run. Why not visit www.daffydowndilly.co.uk and find out more about the lifestyle franchise opportunity on offer.
Credit: Some fact and figures mentioned above have been taken from The British Franchise Association NatWest Franchise Survey 2015. Further details of the survey can be found on the bfa website – www.thebfa.org/about-franchising/franchising-industry-research