Franchising is an increasingly popular way to run a business in Glasgow. While franchising used to be somewhat frowned upon, it is now an accepted way to do business and there are franchises in a wide type of sectors.
Franchising is a business model run by the franchisor, who gives permission for another person to use the trademarks and business system of an established brand in exchange for payments. The franchisor controls how the products are sold and developed, while the franchisee deals with the management of the business. Franchising comes with its own set of advantages and disadvantages.
Advantages of Franchising
When you start a franchise you take less of a risk than when you start your own business, and it is therefore less likely that the franchise will fail. Franchises are already set up under their own business model and they have tried and tested brands and methods attached to them. You basically get the benefits of owning your own business but you don’t need to think up the idea, test it, or build up a brand or customer loyalty. The brand name itself should already be familiar and there will probably be national advertising attached to it. You may also be able to benefit from training and personal development opportunities, according to accountants glasgow provides.
Disadvantages of Franchising
Possible benefits of franchising include not always being able to tell if a franchise is worth investing in, particularly if the franchise is new. You may have to carry out a lot of research to find out if a franchise is worth getting involved in. And while you do get money from the venture you will also have to pay part of your profits to the franchisor, which can be a lot of money if you are doing well in your business.
Things to Consider
You will need to pay an initial fee along with on-going fees, which vary. In order to raise the initial fee you may need to find money from sources just as you would when you start up a business. When you look into a franchise try to evaluate your own strengths and weaknesses and think about whether these, and your own values, match those of the franchise brand. You need to do your research into which franchise is right for you, and make sure that there is room for your business in the local market. Consult Glasgow accountants to look into legal contracts. And make sure you also consult accountants on how the business is going to develop in terms of cash flow and profits.