What is franchising?
‘A business relationship where one party allows another to operate clones of a proven business system in return for initial and ongoing fees.’
Simply put, Local Assist operates a business that works and we would like to offer you the opportunity to copy it for just a small share of the likely profit you will receive operating it as your own business.
You may have come across the concept of ‘franchising’ before; most likely from an idea of how some fast food or retail chains operate in the UK. In fact, franchising is a very mature, regulated and stable business format that is perhaps a much larger industry than you thought.
The Advantages of a Franchise Like Local Assist
The popularity of the franchise industry is simply explained: Many more new franchisee start-ups survive than independent new businesses within the first critical three years. In fact, according to market information, most franchisee businesses are still trading at 10 years.
This is because franchises like Local Assist offer the following advantages:
- The way the business operates is already proven by the Franchisor
- That the Franchisor has already paid the vast expense of developing the business through trial and error and charges the joining Franchisee only a bare fraction of that cost to copy a fully developed business
- Franchisees are fully trained, supported in the difficult first weeks of operation and have experienced Franchisors to provide support/advice
- A Franchisee is supported by a growing network of other Franchisees and thus more powerful national advertising campaigns, support, image and product and service development
- Franchisors have the flexibility to react quickly to market information from many franchisees across the country in order that their Franchisees stay ahead of trends in the market
Better Financial Backing
Franchising is also better supported by investors and banks than new independent businesses because:
- The Franchisor will most likely be a respected business with an established history
- The franchise will already have proven to be profitable in the hands of the Franchisor or another Franchisee
- A Franchisee’s business is underwritten by the systems, training and support of the Franchisor
- Even if a Franchisee fails to realise the full potential of the territory in which they operate, they will often be able to sell the territory to a new Franchisee impressed by the performance of the network elsewhere - thus less of the capital in a franchised business is at risk than in most independent businesses
What should you look for in a franchise?
Local Assist is tailored to satisfy all your professional needs as a Franchisee and provides all of the following tests of a ‘5-star’ franchise that you should look for:
- A business that is proven to be successful in an established format, with a defined system, and a distinctive name and appearance
- A business that is easily duplicated - which means it can be set up in a sufficient number of locations to create a network of manageable and profitable proportions
- A business that is easily learned in a reasonable period of time by someone with the required knowledge, skills and attitude to fit the desired franchisee profile
- A business that creates sufficient profits to satisfy both the franchisor and the franchisee
- A business that has, or can adapt to, a culture of mutual support and trust. In which the franchisor recognises his or her responsibilities to assist appropriately qualified people to create and operate businesses using a common brand and system