Becoming your own boss and setting up a business is a dream for many. Uncertain economic times might hold you back from putting plans in place and making an investment. But what if there was a way of making it happen without it being as much of a risk?
Establishing a franchise is what many aspiring entrepreneurs do to make their dream a reality. With several franchise brands (Home Instead particularly) comprising of highly successful franchisees who own several territories and turn over £1m, it’s easy to see why it’s such a desirable route to take.
What is a franchise?
A franchise is a business model different to a start-up. The franchisee buys the right to use an existing brand’s name, products and services. They run their own business, while being guided by the support and expertise of the brand.
Sectors that people commonly turn to when considering franchising include fast-food restaurants, gyms and logistics businesses. Home care is becoming increasingly desirable, hence Home Instead’s strong franchise network that includes many thriving franchises.
Home Instead’s franchises are independently run. The franchisee has the advantage of managing the business with a level of freedom, while being able to capitalise on our image and the positive reputation of our national brand. Working closely with National Office, franchisees receive consultative advice to help them thrive.
What franchise options are available?
It’s just as important to consider the franchise model that’s right for you as it is the sector you want to work in. Product distribution franchises and management franchises are the two main types. They differ in terms of how your relationship with the franchisor works and what agreement you have.
Product distribution franchises are similar to supplier-dealer relationships. The franchisee receives a license to sell goods belonging to the brand, e.g. cars or soft drinks, in their own location.
The more common route into franchising is a management franchise. The entrepreneur buys the right to use the trademark, products, and services of the brand. Using the expertise and insight of the franchisor, the owner follows the business model set by the brand. Take Home Instead for example. Our franchisees receive guidance throughout their business journey. They manage their business operations according to how National Office advises them, including Care Professional training, financial activities and marketing. It’s a proven business model developed over several years and stands them in excellent stead for success.
While franchisees usually begin by just owning one unit, many expand and become multi-unit owners, extending the area they cover and increasing turnover. At Home Instead we currently have over 255+ franchises across the UK, with many franchisees owning more than one and covering a significant area.
What is expected of a franchisee?
When purchasing a franchise, the entrepreneur signs an agreement. This includes what the franchise fee is, which for Home Instead is 6.5% of monthly revenues (+ VAT), and sets out the brand guidelines and business practices that the franchisee has to follow.
The territory that the franchisee operates in should be made clear in the agreement. Chances are, the brand will have mapped out each franchise territory based on the likelihood of success in that particular area. Take Home Instead for example; each franchise territory is set according to the amount of over 65s in that area and the number of prospective care professionals, providing a base from which franchisees can run a thriving home care company.
What is expected of a franchisor?
The responsibilities of the franchisor are also outlined in the franchise agreement. The training and ongoing support that they provide should be stated, making it clear how you’ll collaborate to get the business established, grow it, and make it profitable.
At Home Instead, we assign franchisees with a business development consultant based at National Office who guides them through establishing and growing their business. Alongside that are various other departments which support owners in other areas crucial for running a successful care company, including the quality team, which helps owners stay compliant with Care Quality Commission (CQC) regulations. Home Instead also opens franchise owners to a whole network of suppliers, boosting the support they have available to them in areas such as finance, marketing and HR.
What are the benefits of franchising?
As a franchisee, you’re not starting from scratch. Owners of start-ups have a much harder job building their brand visibility and getting themselves known to potential customers. Franchisees however are working with a brand name from day one. Working with a reputable franchisor, people in your local area may have already heard of your business. For our franchisees, it’s easier for them to develop a loyal customer base since many people in their community already associate Home Instead with quality care.
From staff training to marketing campaigns, a franchise has developed business operations based on a tried and tested business model. Having been established in 2005 and welcoming hundreds of franchisees into the network, Home Instead UK is in a great position to provide advice based on what has largely resulted in success for other franchisees. Applying it to your own business, you can be confident that you’re heading in the right direction.
Feeling alone is common for business owners. But by running a franchise, you’ve got the backing of a head office team and a network of franchisees that can work with you on a range of areas. A good business franchise will establish a close relationship with its franchisees to help with business operations and give advice on an ongoing basis. Home Instead’s ongoing support includes its annual conference, bringing together National Office and the franchise network for two days of information talks and support sessions. It gives franchise owners the boost they need to thrive.
Being a franchisee means being part of a network of people running a business just like yours. For that reason, you’re part of a peer-support group who can provide advice as you go about your franchise journey. Home Instead’s franchise community is strong. We have seen franchisees develop working relationships with each other, giving them the ability to make decisions based on what has worked for others in their position.
Growth is the goal for any business owner. At Home Instead, we set out clear stages showing what franchisees should do to step up to the next level of growth. It gives them clear objectives to work towards a sustainable business and to boost profitability.
Where should a hopeful franchisee begin?
Look into a sector you feel passionate about. The National Franchise Exhibition, which takes place at Birmingham’s NEC every year, is a great way to chat to franchisors that have opportunities for you. We’re there every year for attendees to learn more about Home Instead, see what we have to offer, and understand the support we provide franchisees with.
You should ask the franchisor whether they offer events that give prospective franchisees the chance to learn more. At Home Instead, we establish close relationships with potential owners and meet with them face to face, so we can go into more depth about opportunities we have to offer and answer any questions they have.
After signing the franchise agreement and coming onboard, a good franchisor will offer initial training, giving them the resources to get their business off to a good start. Our ‘New Owner Inductions’ give new franchisees the chance to come to National Office, get to know the team that supports them, and meet with the suppliers who will also work closely with them. We offer another training session after several months of them establishing their business. As franchisees progress through their business journeys, they can make use of our webinars in areas such as marketing to give them the tools to go from one stage of growth to another.
Support from the franchisor is crucial, but it will only see results with an enthusiastic franchisee applying it to their business. When you’re working with a franchise brand whose vision you agree with, you know that you can collaborate effectively and work towards becoming a successful business owner.