Find out about franchises
Find out about franchises
The FW/Barclays free-entry conference on franchising
for farmers is happening on Nov 7. Barclays
Hellie Dullehan fills in some of the background
ITS no surprise, in these tough times, that more and more farmers are looking to diversify their farms. But it can be difficult balancing the needs of the family farm with those of a new – and potentially more risky – business venture. As pressures on profitability grow, more and more viable options have to be examined.
Franchising may provide farmers and their families with an alternative solution. It offers the option of becoming part of an already successful business, at a significantly reduced risk.
Franchising, put simply, is when the owner of a business brand (known as the franchisor) grants to an individual (the franchisee), the right to run a business selling a product or providing a service under the franchisors business format and identified by the franchisors brand. A modern franchise will generally provide the franchisee with a format for the conduct of the business, a management system for operating the business and the use of the company brand.
Franchising is now an industry with a £9bn turnover, which directly employs over 300,000 people. Your chances of success are likely to be up to five times greater running a franchise than starting up your own independent business.
Franchising is no longer solely related to fast food chains and covers virtually every kind of product and service, although three dominate the franchise sector in the UK – food and drink, business services and home improvements. With practically every sector of the marketplace having franchise openings, many may suit the diverse requirements of modern farm businesses.
From car repair business through to off-road driving centres, the opportunities are only limited by the imagination,and the adaptation of existing farm space may provide a greater profitability on the building or acreage.
Lets look at two examples of where the experiences and knowledge of living and working on a farm could make franchising the perfect solution for farming families looking to enter the wider business market:
Scenic Blue offers a full range of landscape and garden services to both the private and commercial sectors. It was established in 1992 by Judy Behl, Ted Behl and Ray Thwaites and has blossomed into a highly profitable business.
Their nationwide franchise fills a niche marketplace with a first class, cost-effective service in the landscape and gardening field from design to construction.
Oscar Pet Foods with over 200 franchises in home delivery pet food since its franchising operation began in 1993 is the only franchise company that manufactures its own pet food.
The growth opportunity in pet food is with the dry food market, which is now worth £183m for pet, equine and pigeon supplies and growing all the time.
Conclusion
As farmers become increasingly concerned for the succession of their farm and whether they themselves should consider some form of diversification, the options of franchising for themselves or for members of the family may be of increasing importance.
The lower risk and higher support which comes from being associated with a tried and tested business is seen by many experts as an excellent way to gain valuable experience and openings into the wider business world.
What does franchising offer me?
• Proven business idea. This can reduce your risk and give you a head start.
• Established brand. Someone else has done the job of building a name for your business which can be invaluable in selling your product or service.
• Experience and expertise. You wont have to learn all the lessons on your own as most franchises have years of experience you can call on.
• Full marketing support. You simply buy into an existing promotional campaign.
• Increased buying power. Your franchiser will usually be able to provide discounted supplies thanks to their buying power.
• Independence. While you are running your own franchise you will be required to meet the brands standards which will impact on your decision-making process.
• Research and development. Your franchiser will want to stay ahead of the competition and may provide you with material support which new business ventures cant often afford.
Want to know more? FARMERS WEEKLY, Barclays and British Training are organising a conference on franchises on Nov 7. See below for details.
Lots of farmers are thinking about diversifying.
Could a franchise be the best way of doing it?