All you need to know: Franchising

10th November 2014

All you need to know: Franchising

Franchising is a fast growing industry in the UK contributing £13.7 billion to the UK economy in 2013. There are almost a thousand franchisor brands operating in the UK with 39,000 outlets employing over half a million people in the UK. 

What is franchising? 

Franchising is a concept where a successful business grants a person or business a lease that allows that person or business to make use of the franchisor’s business model and brand. Some well know businesses operate franchise models such as McDonalds, Clarks Shoes, Domino’s Pizza and Toni & Guy.  

Most Franchisor’s will charge fees for the use of the brand and business model and for ongoing support and training. These are often calculated as a percentage of the turnover of the franchise. 

There are no specific laws in the UK regarding franchising but the majority of franchises are members of the British Franchise Association (BFA) which is a self-regulatory body for the industry. 

Becoming a Franchisee 

Franchises in the UK span a wide range of industries from accounting and legal firms, fast food outlets to pet care services and sports coaching. Operating a franchise business requires as much time and effort as running any other business as well as a degree of personal financial investment however the rewards can be substantial for the right person. 

At Plus Accounting we currently work on behalf of a number of Franchisees across several different industries and have expertise in dealing with the finer points of accounting for franchises. 

If you would like to know more about Franchising please contact us on 01272 701200 or andrewb@plusaccounting.co.uk 

 

Written by Andrew Blake, Senior Accountant

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