{"id":10176,"date":"2021-07-14T15:08:01","date_gmt":"2021-07-14T14:08:01","guid":{"rendered":"https:\/\/www.franchiselocal.co.uk\/news\/?p=10176"},"modified":"2022-01-27T10:50:34","modified_gmt":"2022-01-27T10:50:34","slug":"why-is-franchising-growing","status":"publish","type":"post","link":"https:\/\/www.franchiselocal.co.uk\/news\/why-is-franchising-growing\/","title":{"rendered":"The Rise And Rise Of Franchising: Why is Franchising Growing?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_88 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #101010;color:#101010\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #101010;color:#101010\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/why-is-franchising-growing\/#do-you-want-a-franchise-with-that\" >Do you want a franchise with that?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/why-is-franchising-growing\/#so-why-is-franchising-growing\" >So, why is franchising growing?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/why-is-franchising-growing\/#going-global\" >Going global<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/why-is-franchising-growing\/#recession-proof\" >Recession-proof<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/why-is-franchising-growing\/#setting-up-for-success\" >Setting up for success<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/why-is-franchising-growing\/#banking-on-support\" >Banking on support<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/why-is-franchising-growing\/#people-power\" >People power<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/why-is-franchising-growing\/#conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p>They say that there are no certainties in life &#8211; and that is particularly true when it comes to business. You might have a killer idea and the best quality product or service, but this may not automatically guarantee that you\u2019ll succeed.<\/p>\n<p>While it\u2019s true that there\u2019s no such thing as a bullet-proof business, one sector seems to be able to survive every kind of political and economic fluctuation &#8211; <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-advantages-and-disadvantages-of-franchising\/\">franchising<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"do-you-want-a-franchise-with-that\"><\/span>Do you want a franchise with that?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>For the uninitiated, <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchise-meaning-in-business\/\">franchising<\/a> involves buying into a brand, for example, <a href=\"https:\/\/www.mcdonalds.com\/gb\/en-gb\/franchising.html\" target=\"_blank\" rel=\"noopener\">McDonald&#8217;s<\/a> or <a href=\"https:\/\/corporate.dominos.co.uk\/franchising\" target=\"_blank\" rel=\"noopener\">Dominos<\/a>, which is already established and then opening your own branch of that company.<\/p>\n<p>For the franchisee (the person buying in), this means that they get to start a business for themselves, selling a product or service which already has an established customer base.<\/p>\n<p>A prime example of this would be, say, Papa John\u2019s Pizza. It may be that you live in a town that doesn\u2019t, as yet, have a branch of Papa John\u2019s. It may also be that people in your town know of &#8211; and like &#8211; Papa John\u2019s as they\u2019ve visited a branch in another town or city. You see where we\u2019re going? Somebody (say, yourself) who opened a Papa John\u2019s in your area is likely to have a ready-made customer base waiting for your doors to open.<\/p>\n<p><a href=\"https:\/\/www.franchiselocal.co.uk\/franchising\/\">Franchising<\/a> is, in essence, the art of starting your own business without the inherent risk of introducing something which is brand new. While this is great for the franchisee, it\u2019s also pretty cool for the <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/how-does-a-franchise-make-money\/\">franchisor<\/a> who is able to quickly expand their business without a huge investment of time and money.<\/p>\n<p>Franchising has been popular since <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/is-a-franchise-a-good-idea-to-start-up-a-business\/\">way back in 1851<\/a> when the Singer Sewing Machine Company launched what is thought to be the first-ever franchise. Since that time, franchising has gone from strength to strength and has enjoyed particularly spectacular growth over the last five years or so &#8211; even during a global pandemic.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"so-why-is-franchising-growing\"><\/span>So, why is franchising growing?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Great question &#8211; and one which is, in fact, is the basis of this article. We will take you through a few reasons for the continued growth of this popular business model.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"going-global\"><\/span>Going global<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In the \u2018olden days\u2019, if a business wanted to <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchising-your-business-things-you-need-to-know\/\">expand internationally<\/a>, they would have to embark on an endurance test of red tape, language barriers and travel expenses in order to set up a branch of their business overseas. <strong>Not so with franchising. <\/strong><\/p>\n<p>In the age of the internet, most franchising transactions can be conducted quickly and easily. Additionally, unlike the traditional business model, the franchisee will generally be a resident of the new country &#8211; which means that language barriers won\u2019t be a problem and, that the franchisee will have a knowledge of the county and culture that the business owner is unlikely to share.<\/p>\n<p>For many brands, the key to success is in international expansion and, franchising is, by far, the simplest and most cost-effective way of doing this.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"recession-proof\"><\/span>Recession-proof<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>We mentioned earlier that franchising continues to grow even as the world went through a pandemic that saw many businesses closing their doors for good and, this really is part of the beauty of franchising.<\/p>\n<p>Although it\u2019s not always the case, often franchise businesses sell <a href=\"https:\/\/www.franchiselocal.co.uk\/franchise-under-10k\/\">low cost<\/a>, everyday products such as <a href=\"https:\/\/www.franchiselocal.co.uk\/industries\/fast-food-franchises\/\">fast food<\/a> and <a href=\"https:\/\/www.franchiselocal.co.uk\/industries\/cafe-coffee-franchises\/\">coffee<\/a>. Even when a country is going through a recession (or, perhaps, a door-slamming pandemic), these businesses will tend to survive. While people may tighten their belts by giving up luxury products and services as they ride out their storm, most are unlikely to sacrifice their daily cappuccino or weekly pizza. A huge number of franchise businesses trade in repeat purchases which are part of their customers\u2019 lifestyle. For the same (very good) reasons, franchise businesses tend to have a longer life than many independent ones &#8211; which brings us to&#8230;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-10177\" title=\"business success\" src=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/07\/business-success.jpg\" alt=\"business success\" width=\"1200\" height=\"800\" srcset=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/07\/business-success.jpg 1200w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/07\/business-success-300x200.jpg 300w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/07\/business-success-1024x683.jpg 1024w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/07\/business-success-768x512.jpg 768w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/07\/business-success-150x100.jpg 150w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/07\/business-success-600x400.jpg 600w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/07\/business-success-696x464.jpg 696w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/07\/business-success-1068x712.jpg 1068w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/07\/business-success-630x420.jpg 630w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/07\/business-success-20x13.jpg 20w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"setting-up-for-success\"><\/span>Setting up for success<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Every year, many people opt out of the rat race to follow their dreams and set up their own business &#8211; only to see it fail within a year. <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/is-a-franchise-a-good-idea-to-start-up-a-business\/\">Starting a business from scratch<\/a> takes time and money and carries a huge amount of risk. While franchising does, in most cases, involve a <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/are-franchises-a-good-investment\/\">financial investment<\/a> on the part of the franchisee, this is usually a fraction of what they\u2019d spend on going it alone and, the risk factor is considerably diminished with this model.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"banking-on-support\"><\/span>Banking on support<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Although many parts of the last year and a half have been extraordinary and &#8211; dare we say it &#8211; unprecedented &#8211; one aspect of franchising has remained on a familiar trajectory &#8211; support from the bank.<\/p>\n<p>In the 1990s, there was an <a href=\"https:\/\/en.wikipedia.org\/wiki\/Dot-com_bubble\" target=\"_blank\" rel=\"noopener\">explosion of dot com companies<\/a>, many of which didn\u2019t last as long as the products that they were selling. During this time, a lot of banks and financial organisations got burnt as these businesses failed to repay business loans that had been issued in good faith.<\/p>\n<p>As a result, banks and other lenders have become increasingly reluctant to fund brand new businesses with nothing behind them but a dream and somebody confident enough to pursue it.<\/p>\n<p>On the other side of the coin, somebody <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/writing-a-franchise-business-plan\/\">seeking finance<\/a> to buy a franchise business has a much higher chance of becoming the banker\u2019s buddy. This is simply because funding for a business with a national or global brand behind it is a much safer bet than an independent one. Because of this, loans for franchise businesses have increased exponentially while those for new businesses dwindle even further.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"people-power\"><\/span>People power<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Another, more simple, reason for the continued growth of franchising is that of the actual people who are buying products. In 2021, customers are demanding a lot, and they want good quality stuff at rock bottom prices. They also want to know that repeat purchases will be the same each time.<\/p>\n<p>Let\u2019s take the example of a sandwich shop. John decides that he is going to set up a brand new shop with his own branding and, Alice decides that she\u2019s going to buy a <a href=\"https:\/\/www.subway.com\/en-gb\/ownafranchise\" target=\"_blank\" rel=\"noopener\">Subway franchise<\/a>. John will be responsible for sourcing all of his own ingredients and materials and, as he is only one small sandwich shop, the prices are likely to be high. Additionally, he can only afford to hire two part-time employees, making it difficult to guarantee consistency with the products. Alice, on the other hand, takes advantage of Subway\u2019s ready-made resources as well as the brand\u2019s bulk buying discounts. She also has set guidelines from the company to ensure that her products are the same every time.<\/p>\n<p>The result is that John ends up with disgruntled customers who object to paying over the odds for an inconsistent product. In the meantime, Alice is sitting pretty as her customers enjoy low prices and the same great sandwich every time.<\/p>\n<p>I know, I know &#8211; now you\u2019re feeling sorry for John but, the reality is that nobody likes paying more than they have to &#8211; particularly for everyday products like coffee and sandwiches and, because of this, customers will often shun the independent neighbourhood cafe in favour of a brand that they know and like.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As we emerge, blinking into the sunshine of a post-Covid world, a huge number of businesses have sadly been unable to survive but, very few of these are franchise businesses.<\/p>\n<p>While there are, of course, exceptions, we can sum up the continued growth of this robust business model, which benefits the franchisor, the franchisee and, most importantly, the customer.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>They say that there are no certainties in life &#8211; and that is particularly true when it comes to business. You might have a killer idea and the best quality product or service, but this may not automatically guarantee that you\u2019ll succeed. While it\u2019s true that there\u2019s no such thing as a bullet-proof business, one [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":10178,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1467],"tags":[],"class_list":["post-10176","post","type-post","status-publish","format-standard","has-post-thumbnail","category-franchise-information"],"acf":[],"jetpack_featured_media_url":"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/07\/Why-is-franchising-growing.jpg","_links":{"self":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts\/10176","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/comments?post=10176"}],"version-history":[{"count":0,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts\/10176\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/media\/10178"}],"wp:attachment":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/media?parent=10176"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/categories?post=10176"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/tags?post=10176"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}