Franchising

Licensing your model to somebody else to run under your brand.

What it means

A franchisor licenses a business format, brand and system to a franchisee, who invests and operates, paying an initial fee and ongoing royalties.

Why it matters

It grows a network using someone else's capital and motivation. It also means your brand is in the hands of operators you do not employ.

What it looks like in practice

It requires a proven, documented, replicable model — a pilot operation, an operations manual, training and support. Franchising an unproven model fails both parties.\n\nThe UK has no franchise-specific statute; the relationship is governed by contract and by general law.

What to watch out for

Selling franchises as the business model rather than the operation. The British Franchise Association exists partly because that pattern recurs.

Where to get proper advice

The British Franchise Association and a franchise solicitor. Speak to existing franchisees of any network you are considering joining.