Franchising

Franchising can describe many different forms of business relationships including licensing, distributor and agency arrangements. The more popular use of the term has arisen from the development of what is called 'business format franchising'.

Business format franchising is the granting of a license by one person (the franchisor) to another (the franchisee), which entitles the franchisee to trade under the trade mark/trade name of the franchisor and to make use of an entire package, comprising all the elements necessary to establish a previously untrained person in the business and to run it with continual assistance on a predetermined basis.

At The IBA we are able to assist both Franchisees & Franchisors, specifically in regards to the funding of setting a franchise opportunity up and purchasing a franchise, including working capital in line with all of the BFA (“British Franchise Association”) guidelines.

The cost implications in principle would follow a set pattern where the franchisor will receive an initial fee from the franchisee, payable at the outset, together with on-going management service fees - usually based on a percentage of annual turnover or mark-ups on supplies.

In return, the franchisor has an obligation to support the franchise network, notably with training, product development, advertising, promotional activities and with a specialist range of management services.

To discuss this service in more depth or to receive more information please contact us