Franchising: Ask The Expert

By Daniel Wade- New Practice Development Manager at WPA Healthcare Practice PLC

Daniel Wade joined the WPA Healthcare Practice as a franchise owner in 2009 covering areas of Sussex, Kent and Surrey. Since then, he has grown his franchise to become the largest business out of the 80 strong network.

He is a two-time finalist of the British Franchise Association ‘franchisee of the year’ awards putting him in the top 15 franchise owners out of 48’000 in the UK.

Daniel, please explain simply what franchising is?

Business format franchising is the granting of a license by one person (the franchisor) to another (the franchisee), which entitles the franchisee to own and operate their own business under the brand, systems and proven business model of the franchisor.

Can you give a brief overview of the UK franchise sector?

The UK franchise sector is thriving. It generates an estimated £17bn to the UK economy and employees over 700,000 people. There are more than 48,000 franchise owners in the UK who are all running their own businesses under the licence of a franchisor.

What brands are currently in franchising?

Some of the worlds largest brands using franchising to grow their business. The obvious examples are the fast food restaurants like McDonalds, Subway and Dominoes. However, there are businesses across all sectors.

Why do you like franchising so much?

It is such a safe way to run your own business. There is a proven business model which you can invest in and know your investment is safe. Less than 1% franchise businesses close due to commercial failure compared to nearly 50% in the wider business environment. You can also grow a large business with 6 out of 10 franchised businesses turning over more than £250,000.

Finally, what tips would you give to someone looking to invest into a franchise business?

Firstly, do your research. Franchising is a partnership, so you need to invest in a brand that you trust. Secondly, look at a sector that you are passionate about. Like starting any business, it’s very tough to launch your business so you will need the passion to keep you going!