Business Surgery: Damian Humphrey, from Ashtons Legal, Bury St Edmunds, on the benefits of dealing with a franchised business
“I was going to use them but didn’t when I realised they were a franchise”
As a franchise lawyer, hearing this from a relative got me thinking: many of the articles I write about franchising extol its virtues to those considering setting up a franchise or those looking at buying into a franchised business, but never have I given any serious thought as to whether a franchise business was a more or less attractive proposition to a would-be customer.
Many of the businesses that we use daily are franchises – High Street brands including McDonald's, Subway, Pizza Hut and Starbucks to name a few.
Franchising, where independent business owners are licensed by brand owners to use the name and follow their systems and processes, is an ever expanding sector for the UK economy, contributing almost £20 billion annually. So are consumers spending more with franchise businesses in the knowledge that they are buying from a franchise or are they simply unaware that a business is franchised? If the latter is true, what are the benefits of buying from a franchise such that they are becoming ever more popular?
- Competitive pricing – as franchise owners are independent, they are free to set their own prices in line with the local economy and market demands.
- Customer service – the quality of service to the consumer is often higher due to the fact that the franchise owner is heavily invested in the business.
- National coverage – franchising enables businesses to expand more rapidly, providing the consumer with a nationwide offering.
- User experience – franchisees are required to strictly follow approved process which are enforced by the franchisor, proving consumers with the same customer experience wherever they are in the country.
With that in mind, maybe next time you will consider buying from a franchise.
Damian Humphrey, Partner, Ashtons Legal
01284 544210 | damian.humphrey@ashtonslegal.co.uk