B2B Markeplace

In deciding whether a franchise or franchise opportunity is the right business choice it is worth considering just how the franchise market is built. Here in the UK the idea of a franchise for sale somehow has less kudos than an opportunity to invest in a privately owned business.

There is a level of complexity in the Low Cost Franchise market that normally is not understood. A couple of hours investigating the diversity of business opportunities available reveals that the market is segmented into a number of different offers. In a sector that is supposedly worth £10bn and employs 360,000 the complexity should not be miscalculated.

At the top of the market the bigger well know high street brands such as McDonalds (probably the most well known franchise operation) offer an particularly successful business model and brand. A Franchise Opportunity with these kinds of market leaders is not for the faint hearted, a large personal investment will be needed, extensive training and exposure to the companies established brand and behaviours are obligatory. In return for the considerable financial and professional commitment the organisation model is rock solid and the business and marketing plans should be well recognised and easily put into practice.

Of course with such a heavy investment and rather low risk, returns are likely to be lower than other opportunities.

The second tier offers less investment, the occasion to be flexible within the clear product or service and normally lower investment. These opportunities are unlikely to be well know high street brands but may occupy the secondary pitches in the central business district or even we see some internet businesses falling into this group. As with the top category there will be an established brand and plan to be adopted but there may be opportunity for a little “self–expression” as the shape of the firm is likely to be lower and the market may well be regional in nature. Franchises like Monkey Music and 0800 Handyman would fall into this category, they are very successful franchises in their own rights but not hugely visible on the high street.

The final category is that of start-up franchises which offer the potential entrepreneur the opportunity to get in at the ground level. These business ideas when offered as a Franchise For Sale are the innovative business plans that do carry a higher level of risk, in that the sales proposition, and even the management of the holding company may be not yet fully agreed. The infrastructure will be in place of course but the companies are likely to be quite new. Depending on the franchisee’s outlook to business these cheaper opportunities may well be the most attractive as they do allow for a degree of development and flexibility, some will even enthusiastically encourage the brand development from within the membership. If you’re searching for an opportunity to form the franchise then getting in at the cheaper end of the market may well be a good decision.

Basically the franchise market is many layered, complex and provides a number of opportunities dependant on the investors available capital, attitude to risk and medium to long term aims.