{"id":9606,"date":"2021-05-26T16:20:35","date_gmt":"2021-05-26T15:20:35","guid":{"rendered":"https:\/\/www.franchiselocal.co.uk\/news\/?p=9606"},"modified":"2022-01-27T10:50:55","modified_gmt":"2022-01-27T10:50:55","slug":"will-franchising-die-out-as-a-business-model","status":"publish","type":"post","link":"https:\/\/www.franchiselocal.co.uk\/news\/will-franchising-die-out-as-a-business-model\/","title":{"rendered":"Will Franchising Die Out As A Business Model?\u00a0"},"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-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/will-franchising-die-out-as-a-business-model\/#dialling-down-the-financial-risk\" >Dialling down the financial risk<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/will-franchising-die-out-as-a-business-model\/#dialling-up-the-yes-factor\" >Dialling up the yes factor<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/will-franchising-die-out-as-a-business-model\/#in-the-market-for-success\" >In the market for success<\/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\/will-franchising-die-out-as-a-business-model\/#warding-off-recession\" >Warding off recession<\/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\/will-franchising-die-out-as-a-business-model\/#grabbing-an-exclusive\" >Grabbing an exclusive<\/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\/will-franchising-die-out-as-a-business-model\/#getting-ahead-of-the-big-boys\" >Getting ahead of the big boys<\/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\/will-franchising-die-out-as-a-business-model\/#supply-on-demand\" >Supply on demand<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/will-franchising-die-out-as-a-business-model\/#the-world-is-your-oyster\" >The world is your oyster<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/will-franchising-die-out-as-a-business-model\/#a-helping-hand\" >A helping hand<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/will-franchising-die-out-as-a-business-model\/#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>There\u2019s no doubt that the business world is changing &#8211; advances in technology mean that almost anybody can start their own business with little more than a great idea and a laptop.<\/p>\n<p>As great as the internet is, however, our love affair with bricks and mortar shops and establishments remains strong; something which has been highlighted as we flock back to our favourite shops and restaurants now that restrictions have been lifted. There are a few options available when it comes to high street businesses &#8211; one of which is <a href=\"https:\/\/www.franchiselocal.co.uk\/franchising\/\">franchising<\/a>. There are those who feel that, in 2021, it\u2019s a less relevant business model than in the past; however, they are wrong!<\/p>\n<p>In this article, we\u2019re going to be looking at some excellent reasons why the franchise business model is still very much alive and kicking:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"dialling-down-the-financial-risk\"><\/span>Dialling down the financial risk<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>After a long pandemic, the idea of investing in a business is, of course, a concern as our economy battles to bounce back. Unlike starting your own business from scratch, investing in a franchise offers a reduced level of financial risk for the franchisee who is buying into a tried and tested business model. For anybody claiming that franchising is a dying breed of business model, the\u00a0<a href=\"https:\/\/www.proactive.marketing\/uk-franchise-industry\/\" target=\"_blank\" rel=\"noopener\">\u00a315 billion<\/a>\u00a0contributed to the UK economy by the franchise industry tells a very different story.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"dialling-up-the-yes-factor\"><\/span>Dialling up the yes factor<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>As well as reducing financial risk, a franchise system will increase your chances of gaining funding, should you need it. As a rule of thumb, your bank manager is more likely to welcome you with open arms if you\u2019re asking for a loan for an established business than if you\u2019re starting an independent business that carries a higher level of risk.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-9614\" title=\"market for success\" src=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/05\/market-for-success.jpg\" alt=\"market for success\" width=\"1200\" height=\"801\" srcset=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/05\/market-for-success.jpg 1200w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/05\/market-for-success-300x200.jpg 300w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/05\/market-for-success-1024x684.jpg 1024w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/05\/market-for-success-768x513.jpg 768w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/05\/market-for-success-150x100.jpg 150w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/05\/market-for-success-600x401.jpg 600w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/05\/market-for-success-696x465.jpg 696w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/05\/market-for-success-1068x713.jpg 1068w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/05\/market-for-success-629x420.jpg 629w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/05\/market-for-success-20x13.jpg 20w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"in-the-market-for-success\"><\/span>In the market for success<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>When starting a new business from the ground up, you automatically have a lot of groundwork to cover &#8211; not least in conducting comprehensive market testing. Market testing is vital for any product or service and can often take up a lot of time and a sizeable chunk of your budget.<\/p>\n<p>If, however, you decide to buy a franchise, you\u2019re grabbing a slice of a business that has already successfully conducted its testing and has developed a large market for its products.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"warding-off-recession\"><\/span>Warding off recession<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>While no business can be said to be completely recession-proof, investing in an established franchise is an excellent way of hedging your bets.<\/p>\n<p>During a recession, new and small businesses are often\u00a0<a href=\"https:\/\/smallbusiness.chron.com\/effect-recession-small-businesses-61164.html\" target=\"_blank\" rel=\"noopener\">hit the hardest<\/a>. They tend not to have much of a safety net in terms of emergency funds. The UK\u2019s 44,000 franchise owners, however, are more likely to ride the storm of a recession than others due to a couple of factors:<\/p>\n<p><strong>A household name<\/strong> &#8211; In many cases, franchised businesses provide products and services that are well known and a part of their customers\u2019 lifestyles &#8211; for example, <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/what-is-the-biggest-franchise-in-the-uk\/\">McDonald&#8217;s<\/a>. These types of businesses are rarely affected by a recession. While people may tighten their belts in terms of holidays and luxury goods, they\u2019re unlikely to give up their daily coffee or breakfast.<\/p>\n<p><strong>Bigger pockets<\/strong>\u00a0&#8211; Franchisees enjoy the support of a large company, including financial support. This can prove to be a vital lifeline for franchisees during times of economic strife.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"grabbing-an-exclusive\"><\/span>Grabbing an exclusive<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Competition is an unwelcome but often inevitable part of running a business.<\/p>\n<p>As an independent business owner, this is a constant concern. Your <a href=\"https:\/\/www.franchiselocal.co.uk\/industries\/cafe-coffee-franchises\/\">coffee shop<\/a> might be great, but there\u2019s absolutely nothing stopping somebody from opening a similar business next door.<\/p>\n<p>With <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchise-meaning-in-business\/\">franchising<\/a>, business owners benefit from a degree of exclusivity as the franchisor will usually agree not to sell another franchise within your territory. While this won\u2019t prevent somebody from opening a similar kind of business in your locality, the advantage of running a well-known brand exclusively within your area is a compelling one.<\/p>\n<p>In this respect, you\u2019ll usually receive support from the franchisor when it comes to choosing your location and researching your audience &#8211; something which you would be responsible for doing yourself if you were going it alone.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-2899\" title=\"McDonald's as one of the most profitable franchises in the UK\" src=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2019\/09\/McDonald\u2019s-as-one-of-the-most-profitable-franchises-in-the-UK.jpg\" alt=\"One of the many McDonald\u2019s fast-food restaurants\" width=\"1000\" height=\"677\" srcset=\"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2019\/09\/McDonald\u2019s-as-one-of-the-most-profitable-franchises-in-the-UK.jpg 1000w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2019\/09\/McDonald\u2019s-as-one-of-the-most-profitable-franchises-in-the-UK-300x203.jpg 300w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2019\/09\/McDonald\u2019s-as-one-of-the-most-profitable-franchises-in-the-UK-768x520.jpg 768w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2019\/09\/McDonald\u2019s-as-one-of-the-most-profitable-franchises-in-the-UK-150x102.jpg 150w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2019\/09\/McDonald\u2019s-as-one-of-the-most-profitable-franchises-in-the-UK-600x406.jpg 600w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2019\/09\/McDonald\u2019s-as-one-of-the-most-profitable-franchises-in-the-UK-696x471.jpg 696w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2019\/09\/McDonald\u2019s-as-one-of-the-most-profitable-franchises-in-the-UK-620x420.jpg 620w, https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2019\/09\/McDonald\u2019s-as-one-of-the-most-profitable-franchises-in-the-UK-20x14.jpg 20w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"getting-ahead-of-the-big-boys\"><\/span>Getting ahead of the big boys<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Speaking of competing, owning a branch of a <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/a-closer-look-at-the-most-profitable-franchises-in-the-uk\/\">big-name franchise<\/a> allows you to do just that.<\/p>\n<p>Even though your branch may be considered a \u2018small business\u2019, having the clout of a big name &#8211; and all that goes with it &#8211; behind you will often enable you to compete with much larger companies in your local area; something which is rarely possible for small, independent businesses.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"supply-on-demand\"><\/span>Supply on demand<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Before you\u2019re able to start &#8216;stacking the shelves&#8217; of your independent business, you\u2019ll find yourself stuck in the time-sucking black hole of finding suppliers for your products or materials.<\/p>\n<p>Finding the right supplier can be incredibly frustrating and time-consuming. The great news for the franchisee is that all of this is done for you. Buying into a <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/what-is-a-franchise-opportunity\/\">franchise<\/a> means automatically tapping into a pool of trusted suppliers &#8211; and the franchisor does all the hard work for you in terms of re-examining product costs and supplier renewals. For a busy business owner, the time and money-savings in this department can be considerable.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"the-world-is-your-oyster\"><\/span>The world is your oyster<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Tapping into a franchise can give you automatic access to an international brand &#8211; something which would take a lot of time and a lot of money as an independent (not to mention a considerable number of headaches).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"a-helping-hand\"><\/span>A helping hand<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Setting up and running your own company can be a lonely business with long hours and a number of fires to put out on a weekly basis. This can also be incredibly stressful for the business owner who is responsible for managing their business &#8211; and their employees &#8211; on their own.<\/p>\n<p>As a franchisee, you\u2019ll find yourself backed up by a support network in the form of the <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchisor-and-franchisee-relationships-in-2021\/\">franchisor<\/a>, as well as an opportunity to share advice and inspiration with other franchisees. When first starting out, this kind of support can be invaluable as you navigate your way through the tricky business of running a company.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>So, at the beginning of this article, we asked if franchising is likely to die out as a business model. The answer to this is a resounding \u2018Hell no\u2019. History has shown that franchising is an extremely safe and lucrative proposition &#8211; even during a global pandemic.<\/p>\n<p>While there is, of course, no guarantee of success, <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/8-factors-to-consider-before-buying-a-franchise\/\">buying a franchise<\/a>\u00a0rather than starting a new business from scratch is kind of like jumping out of a plane with two parachutes rather than a single, slightly moth-eaten one.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There\u2019s no doubt that the business world is changing &#8211; advances in technology mean that almost anybody can start their own business with little more than a great idea and a laptop. As great as the internet is, however, our love affair with bricks and mortar shops and establishments remains strong; something which has been [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":9608,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1467],"tags":[],"class_list":["post-9606","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\/05\/Will-Franchising-Die-Out-As-A-Business-Model.jpg","_links":{"self":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts\/9606","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=9606"}],"version-history":[{"count":0,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts\/9606\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/media\/9608"}],"wp:attachment":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/media?parent=9606"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/categories?post=9606"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/tags?post=9606"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}