Franchising is one of those great business relationships where both parties win. The Franchisor is able to grow his business by recruiting franchisees who will deliver his product or services to customers in localities he could never reach, while the franchisee has the opportunity to replicate what is already a well-proved business model. Let’s look at these two activities in a little more detail.
Every franchise has a similar background; someone, somewhere, at some time, decided that they wanted to build a new business that would sell something, typically, a product or a service, to customers who might need that product or service. So, they started the business, probably made a few poor decisions but also a lot of good ones, and the business grew and prospered and eventually the owner realised that they had virtually captured all of their local market for their product or service.
How were they going to grow the business in other locations where there were potential customers? Well, they could open another branch in another location and build a new business there. That would involve them investing in that new business to provide premises, equipment etc but it would also mean that they would have to employ people to run the business on their behalf.
They would have to train them in how to run the business and to deliver the product or service. But how would they find someone who would be as committed to building that new business as they had been in establishing the first business? This is where the franchisee comes in.
In just the same way as the original owner was prompted to build their own business, potential franchisees are inspired to do the same, but they can take something of a short-cut, because the franchisor has already established the systems and methods that have allowed them to build a profitable business. By replicating those business fundamentals, the franchisee can have a much better chance of starting their own successful business and the franchisor can add another branch to their own network.
What franchising offers to any potential franchisee is not only a proven business model but, perhaps more importantly, training and ongoing support to give the business the best possible chance of success and it is this success which will provide the win-win for both parties.
By virtue of the fact that you are reading this, we can assume that you are one of those people who want to own their own business and benefit financially from their own efforts. We know, however, that not everyone is a good fit for the business in just the same way as not every business is a good fit for the potential franchisee.
As you progress through this website we hope that you will learn sufficient about the business to make an informed decision as to whether you want to go to the next stage of speaking to one of the First Vehicle Finance franchising team.