An Introduction to Buying a Business-Format Franchise
- Price: £3.60
- Published: October 2015
- Type: Business Information Factsheet
- Format: PDF
A business-format franchise is a licence granted by an existing business ('the franchisor') to another business or person ('the franchisee') that entitles them to operate under the trade name or the trade mark of the franchisor, and to sell its products and services.
The European Franchise Federation (EFF) has published a Code of Ethics for Franchising, which provides a further definition of franchising as 'a system of marketing goods and/or services and/or technology, which is based upon a close and ongoing collaboration between legally and financially separate and independent undertakings'. Go to www.eff-franchise.com/77/regulation.html for further information.
There are over 900 individual franchise schemes currently operating in the UK. The franchise industry was worth almost £14 billion a year in 2013.
This factsheet provides an introduction to the issues involved in buying a business franchise. It explains the basics of the franchising process, looks at how to choose a franchise and a franchisor, and outlines what is involved in a franchise agreement, as well as providing hints and tips and sources of further information.