Buying into an existing established Business Format Franchising can be the perfect way to launch your own business. It minimises the risk of going into business by providing a tried and tested concept as well as access to training and ongoing advice and support. Franchising means being in business for yourself but not by yourself. The franchise sector in Ireland has shown significant growth and now contains a wide range of franchises in the service and retail areas.
It gives the franchisee a licence to replicate an existing business using a trade name, product and service, with training, an operations manual, a legal agreement and ongoing support from the franchisor.
The franchise sector is now well established and is an important contributor to the Irish economy both in terms of the employment it creates and the wealth it generates. The growth in the franchise sector in Ireland looks set to increase through new franchisees setting up their own businesses, through existing indigenous businesses using the franchise model for expansion and through new non-Irish franchises entering the market due to our improving domestic economy.
Business Format Franchising is a business method in which the franchisor (developer) grants to the franchisee (investor) the right to run a business selling a product or providing a service under the franchisor’s business format and identified by the franchisor’s trademark or brand. This includes a format for the conduct of the business, a management system for operating the business and a shared trade identity.
Franchising is a comprehensive business relationship whose four essential elements ensure a better success rate than starting a non-franchised business. These are:
- A legal agreement between the franchisor and franchisee
- An operations manual, on the workings of the business written by the franchisor
- A training programme, provided to the franchisee
- On-going support, from the franchisor to the franchisee during the term of the contract
In return for these the franchisee pays the franchisor an initial franchise fee and a continuing management services fee based on a small percentage of turnover.
Franchising is a dynamic force in the economy and provides potential franchisees with a
wide range of opportunities in various franchise systems in Ireland.
Selecting a Franchise
There is a wide range of franchises available so it may help to narrow your choice through the following key questions –
*Does the franchise have a proven track record?
*Does it have the four elements mentioned above?
*Can you identify with the concept?
*Will it work in your chosen area?
*Do you have the necessary finance?