When it comes to franchising your business, the most important questions to ask yourself are the following: why franchising? How do I know whether franchising is right for me?

Should I franchise my business? And how do I go about franchising my company? Franchising your business allows you to expand fast and maintain brand consistency.  It’s a big step to start your own franchise business, and it might be scary. 

If you have a small business and want to expand, franchising might be one of the most efficient methods to grow it quickly. And if you approach it correctly, you may surely increase your profits.

What does franchise mean?

A franchise is an arrangement in which one company, the franchisee pays another company, the franchisor to utilise the franchisor’s business model and trademarks. The franchisor provides the franchisee with a variety of services, including training, support, and advertising. 

Opening up your first franchise? Here’s everything you need to know.

Plan how you want to grow

Decide how you wish to develop. It’s preferable to have steady, strategic expansion. Is it feasible to grow internationally? Should you follow an area-wide strategy?

Pick the right locations

What are the best locations for your business? This is something as an entrepreneur which will make a difference to the business. Some franchisors will be able to assign areas to specific franchisees based on the sort of business they operate. This is frequently the case for businesses in the transportation or delivery industries. Franchisees may, however, be left to select their location, or the franchisor may not be able to give a certain area, in which case the franchisee must work with another franchised unit nearby.

Choose the right franchise 

Choose a franchise that will help you achieve your business objectives. As an entrepreneur, you will know your strengths and weaknesses, use this to choose the right franchise. What kind of franchise business or sector do you want to be a part of? Decide on the company objectives, and how might a franchise assist you in accomplishing them.

Secure funding

Many people who want to invest in a franchise can’t afford to pay the whole amount upfront. This is because the money needed is a large sum. There are various funding alternatives available to you, including bank loans, government-backed small business loans, personal loans from friends and family, and so on. Remember that you’ll need money to cover expenditures until the company starts to make a profit, which may take months.

Legal

For franchisors or franchisees, there are no particular registration requirements. All UK businesses and limited liability partnerships (LLPs), on the other hand, must register with the registrar of companies and must comply with formal obligations such as producing yearly reports.

Trademark your business

You must register your trademarks. You can register your trademark to protect your brand, for example, the name of your product or service.

To see your company in any upcoming features we are arranging please email editorial@hurstmediacompany.co.uk

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What is a franchise?

Many of the big names on the high street such as Starbucks, McDonald’s are franchises. This means that people can trade under a brand name for a fee.

Which brands operate franchises?

Starbucks, Domino’s and KFC all operate franchises in the UK (and globally). Even Swarovski operates a retail franchise in the UK.

Who are the most famous 5 celebs operating franchises right now?

1. Kanye West, Burger King

Kanye, who is now a billionaire, has made money from various businesses.

An astute businessman, franchises seem an obvious business venture for him. Despite tweeting in 2008 that “McDonald’s is my favourite restaurant”, Kanye reportedly bought 10 Burger King franchises in 2010 as a gift for Kim Kardashian.

2. Magic Johnson, Starbucks

Former LA Lakers star Magic Johnson is another celeb who has made money from investing in franchises.

Magic Johnson retired from professional basketball in the 1990s. In 1998, Johnson Development Corporation (JDC), a division of Magic Johnson Enterprises, and Starbucks Coffee Company entered into a game-changing 50/50 partnership to build Starbucks stores in underserved neighbourhoods.

Magic Johnson persuaded Starbucks CEO Howard Schultz to open more Starbucks in inner cities with him. More than 100 stores were opened in cities including Los Angeles, New York, Seattle, Chicago, Denver, Detroit, Atlanta, San Diego, San Francisco and Washington, D.C.

Starbucks stores in the Harlem neighbourhood of New York City, the Bronzeville neighbourhood of Chicago, and the Crenshaw district in Los Angeles. Starbucks bought these back at a later date, making the man millions.

3. Venus Williams: Jamba Juice

Tennis star Venus Williams bought four Jamba Juice franchise stores in the Washington area. The Jamba Juice Company is a leading restaurant retailer of better-for-you, speciality beverage and food offerings, which includes whole fruit smoothies, fresh-squeezed juices and juice blends, hot teas and a variety of food items.

The brand is an ideal partnership for Venus as they focus on nutrition and targeting those who want to refuel after exercising.

“It is extremely exciting to open my fourth Jamba Juice location and continue expanding the brand’s presence in the DC metro area,” said Venus Williams, tennis star and entrepreneur.

4. Phil Mickelson: Five Guys

Professional golfer Phil Mickelson loves Five Guys so much, he purchased the rights for Five Guys franchises in Orange County California.

Buying into a popular franchise is a great business proposition for a celebrity, as the franchisee benefits from the exposure of their fame.

The celeb benefits from having a ready-made business, which they can build a team to run on a day-to-day basis. A great way to build a passive income from an investment.

5. Pharrell Williams: Fatburger

Fatburger is associated with celebs in the US; many of whom have invested in their restaurants including Kanye West, Queen Latifah and Pharrell Williams. The retro-style burger joint features jukeboxes in all of its stores and is incredibly popular in the US.

Especially after featuring in Ice Cube’s song It Was a Good Day and also by The Notorious B.I.G. in Going Back to Cali. The first outlet in the UK opened up near Camden Market in 2018.

Singer Pharrell Williams reportedly opened the first Fatburger restaurant in China with CEO Andrew Wiederhorn.

To see your company in any upcoming features we are arranging please email editorial@hurstmediacompany.co.uk

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