Why Start a Business Franchise
Setting up a business involves an element of risk, but by choosing the franchise route into business you can reduce that risk factor. When you start a franchise and become your own boss, you’re buying into a proven business model that works.
According to the British Franchise Association (bfa) about 97% of all franchisees reported profitability over the last 12 months*.
Joining a Business Partnership
Franchising is a business partnership – coupled together with a franchise agreement – in which both parties – the franchisor and the franchisee, depend on each others efforts for continued success.
As a franchisee you can expect to benefit from the experience of your franchisor, their training, ongoing support, business systems and of course access to a network of other franchisees running the same business as you but not in competition with you. This collective know-how contributes to reducing that risk factor of setting up a business on your own.
In return for the franchisor’s support you will pay an initial franchise fee and an ongoing monthly fee. These fees will vary depending on the type of franchise and industry you choose. The franchise fee is paid to cover the costs incurred by the franchisor in helping you set up and run your business. On top of this you will also need to set aside some money to ‘set-up’, pay legal fees and use as working capital. Your franchisor will provide advice on finding premises, buying equipment and employing staff.
Franchising with Driver Hire
Driver Hire has been in business for over 30 years and has been franchising since 1987. We’ve had time to refine our business model and become a leading name in the transport and logistics recruitment sector. Driver Hire – a recruitment franchise – is a brand our franchisees and customers can trust.
When you start a franchise with Driver Hire you will sign a detailed franchise agreement. At Driver Hire the franchise agreement is for a period of 5 years and this can then be renewed every 5 years. Driver Hire does not charge a renewal franchise fee. The purpose of the agreement is to set out your rights and responsibilities and that of the franchisor.
Another major benefit of franchising is that banks are generally more willing to lend money to someone investing in a franchise rather than a conventional start-up business. Because of Driver Hire’s successful track record as a recruitment franchise, funding of up to 70% is available subject to status.
* Source: https://www.thebfa.org/about-franchising/franchising-key-facts