Franchised businesses have been prominent in the UK since the late 1970’s, however if you haven’t worked in the franchise industry before the model can be slightly confusing. Read Winkworth’s mini-guide to franchising below for a crash course on what to expect.
Franchising is a contractual partnership between two entities; the Franchisor (a company) and the Franchisee (an individual). The franchisee pays the franchisor an ongoing fee through a percentage of income, and in return the franchisor will provide infrastructure. In Winkworth’s case this means:
- The trademark
- Full back office support services
- IT and SEO
- Client and Corporate Services
- Ongoing training for all staff
- Robust software systems
- Brand awareness and positive reputation
Franchising and the economy
In the latest report published by the British Franchise Association, there has been no better time than the present to join a franchised network. The UK franchise sector is booming, contributing approximately £15.1 billion to the economy and employing over 621,000 people.
Research shows consistent statistics that approximately 90% of franchisees report profitability, with over 97% reporting a turnover of more than £250,000.
Potential Winkworth franchisees will need working capital of between £180,000 and £250,000 to invest in their office, and not everyone has that level of funding available.
Most large well-known banks now have dedicated franchising departments who offer financial support to franchisees. Winkworth works closely with HSBC’s franchising team who provide several different ways to help with funding and have the expertise to guide and advise franchisees every step of the way.
Advantages of franchising
Franchising has quickly become such a popular business model due to several advantages.
- Brand Awareness – Winkworth has been operating as an estate agent in London since 1835 and has been working under a franchised model for the last 40 years throughout the UK, creating a solid reputation and building high levels of brand awareness.
- Robust business model – Having franchised for four decades Winkworth has had time to learn what works and what doesn’t, refining the offering to franchisees to ensure the majority enjoy long-term success.
- Support – The staff at Winkworth franchising have over 100 years of experience between them and are there to assist the franchisees through providing all aspects of back-office support. Other franchisees within the Winkworth network are also highly knowledgeable and are happy to guide any new franchisee when they join.
A franchise is a legally binding agreement between a franchisor and a franchisee. The franchisee pays a small percentage of income to the franchisor in return for services, support and brand awareness. The franchise model is a robust one and with the sector in the UK thriving, now is the time to invest.