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The benefit of economies of scale in franchising

Any large business or organisation provides built-in economies of scale – and franchising is no different. Economies of scale are both an important factor and a benefit to take into consideration when deciding whether to join a franchise business or rather open as an independent.

Franchisors offer economies of scale that small independent businesses simply cannot achieve, and these can be a huge benefit to the franchisees. There’s strength in numbers.

Winkworth franchising provide economies of scale to all their franchisees in many different forms and outlined below are some of the key ones:

National Advertising/Marketing

All the franchisees across the network pay a small monthly fee into a National Advertising Fund (NAF). The NAF is used to pay for various initiatives which often when bought on a larger scale provide great benefits and cost savings to the whole group compared to buying alone. This fund is not only used to promote key brand awareness across the country through national advertising campaigns but in some cases can also provide a platform for the individual offices to build upon, for example when using vital marketing tools such as PPC or Facebook advertising. This is managed by Winkworth’s marketing team at head office and something an independent simply cannot compete with.

Digital Technology

Winkworth’s in-house IT department and third-party developers manage not only the main Winkworth website but also all the office’s individual microsites. The teams look to consistently evolve the Winkworth digital offering, and the main website is fully updated and refreshed every three years – again at a time-consuming and financial price that an independent would struggle to achieve.

Research and Development

In order to ensure competitiveness and innovation for the brand and overall business network, Winkworth head office do lots of R&D. Having a large network of franchisees spread across the UK, Winkworth are able to invite individual offices to trial new ideas and software on a smaller scale, testing and perfecting the offering before potentially rolling out across the circa 100 offices.


It’s no secret that the marketing portals estate agents must use to remain in competition can be vastly expensive. Winkworth negotiate yearly packages for all the franchisees across main portals such as Rightmove and On The Market to ensure the offices are paying a competitive and reasonable monthly subscription cost.


When a franchisee joins the Winkworth network they immediately become part of a bigger picture. Any new office opening will benefit the existing offices and most of the “veteran” Winkworth franchisees are more than happy to offer advice and solutions to any newcomer. So, as well as the economies of scale across the franchise working to benefit a franchisee on a cost basis, potential franchisees will also benefit from the knowledge and experience of all the individuals across the network.

If you would like more information on joining the Winkworth network or would simply like an initial conversation regarding franchising – get in touch with the New Franchising team today.

Interested in knowing more about owning a Winkworth office?
Contact our New Franchising team

James Campbell | Gina Piper | 020 7355 0200

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