Job Guide - Franchise Owner

The Job and What's Involved

A franchise is an arrangement between an established company (the franchiser) and a local operator (the franchise owner, often known as a 'franchisee'). As a franchisee, you would be self-employed and own the business, but you would benefit from your products or services already being familiar to the public.

Many types of business are run as franchises, in particular:

- Convenience stores
- Food Take-Aways
- Printing
- Professional Cleaning Services
- Hairdressers
- Parcel Delivery
- Estate Agents
- Recruitment Consultancies

You would pay an initial fee to use the franchise brand and products, and then pay the franchiser a regular management service fee based on a percentage of your turnover. In return, the franchising company would provide you with training, guidelines for running and advertising the business, and any stock, equipment and shop fittings that you might need.

Your hours would depend on the type of franchise you ran, but you are likely to need to put in long hours to make your business succeed.

Your working environment would also vary according to the type of franchise – you could be running a high street shop, travelling to customers in a mobile business van, or working from home.

Your profits (and therefore your income) will depend on the type and size of franchise, and how much effort you put into making the business work.

Getting Started with this Career Choice

Over 700 franchise systems are operating in the UK, including many well-known businesses.

You can find information about available franchises from Franchise Development Services, from franchise exhibitions and The Franchise Magazine.

Education and Training

You don't need formal qualifications to run most franchises, but you would be at an advantage with some business skills in areas like people management and basic accounting.

You often do not need any direct experience of the business that you are running (as training is provided), but previous work experience in sales, management and customer service would be useful.

You will need enough money to buy the franchise and pay the franchiser's fees. Few franchises are available for less than £5,000, and the average start-up cost is between £20,000 and £50,000.

If you are thinking of running a franchise and would like some advice, you could contact the British Franchise Association, which runs seminars, provides information and approves franchising companies.

Before you buy a franchise, you may find it useful to take a short business start-up course run by a local college, adult education centre or enterprise organisation. You can also get business start-up advice and training from the Business Link network (in England), Invest Northern Ireland, Business Support Wales or Scottish Enterprise.

A Few More Exams You Might Need

All franchising companies will offer you some initial training.

Some franchisers will also train your employees and provide ongoing training as part of the franchise agreement.

Training is likely to include:

Operating the business to the required standard.
Sales skills.
Product knowledge, pricing and marketing.
Finance, administration and customer relations.

You could choose to work towards qualifications aimed at people running their own business, such as:

NVQ Level 3 in Starting a New Business Enterprise.
NVQ Level 4 in Developing an Established Business Enterprise.

You can also get ongoing business development support and advice from organisations like the Business Link network.

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Skills and Personal Qualities Needed

A franchise owner needs:

Motivation and determination.
Good business sense.
Excellent organisational skills.
Willingness to follow the franchise company's rules and guidelines.
An understanding of budgets and accounts.
The confidence to market and promote your own business.
Good communication skills.
The stamina to cope with working long hours.
The ability to manage and motivate employees.

Your Long Term Prospects

Working as a franchiser your prospects depend on making a success of your business.

As you business grows you may be able to expand by running a chain of franchises or even develop your own ideas for a franchise opportunity that can offered to a new group of franchisees.