Guide to buying a franchise in the UK: Franchises For Sale Guide

Franchising is directed by a franchisor. The practice involves a certain way of doing business by promoting a brand. The franchisor authorises a franchisee to operate an entity of the business using the brand of the original franchise.

The franchisee must pay a fee and often give up a percentage of the profit to the originating business. The fee is the payment provided for the use of the brand which can often times bring in business simply because of the name.

A franchisee can also benefit from advertising and training and other budgeted items from the company. Other support systems such as advise with business deals are also made available.

A franchising agreement will usually contain details about areas of business the franchisee will operate and reside over. This could include the geographical location and which territories the franchisee will cover. The franchisor will usually earn a royalty sum on what the franchisee sells.

Examples of franchises include: coffee shops, hearing aid sales offices and vending machines.

If a franchisee ends an agreement before the completion of a contract they may have to pay a fee or compensate somehow for money lost. Contracts usually run for 3 to 5 years in a franchising agreement.