How Does Franchising Work?

If you’re interested in franchising and want to learn more about how it works, our quick guide offers answers to the most frequently asked questions.

What is a franchise?

A franchise is a company that operates independently but utilises some or all of the features of a larger, more established business in the same industry or sector. This often includes adopting the name, brand and products of the larger organisation.

This is a useful proposition for new or growing businesses as they benefit from the existing popularity and marketing of an established brand, making it easier to gain new clients.

Because of the stability and support offered by such agreements, franchising is widely recognised as a low-risk way to get a business venture off the ground.

Are there any well-known franchises?

Too many to list!

International brands such as McDonald’s, Pizza Hut and Subway all operate through extensive global franchising networks. UK franchises you may recognise from the high street include Specsavers, The Body Shop and The Carphone Warehouse. The domestic cleaning industry also offers an ideal opportunity for a successful franchising model.

So, how does franchising work?

Essentially, a ‘parent’ company (the franchisor) grants another company, usually a small business or start-up (the franchisee) a licence to use their corporate identity and merchandise.

For the length of the franchise agreement the franchisee will pay a fee to the franchisor for the use of branding, products and advertising collateral. Training and additional guidance is also offered as part of most contracts.

The day-to-day running of the franchise is directed independently by the franchisee, who has the freedom to operate, administer and market the business as they choose.

If you would like to learn more about how a Domestique House Cleaning franchise works, please click here to read through our brochure.

How much can I earn as a franchisee?

As with any business it will be instinct, effort and dedication that dictates your earnings. The advantage of becoming a franchisee is that your business has the perfect commercial grounding and brand recognition to develop into a highly profitable operation.

Our Earnings Calculator helps you to estimate how much you could stand to earn as a Domestique Cleaning franchise.

What costs can I expect to pay?

Although this varies from organisation to organisation, the franchisee will generally pay an upfront fee at the beginning of the contract with additional costs payable on a regular basis.

At Domestique, our franchisees can benefit from no management fee charges for the first 12 months, allowing our franchisees plenty of time to build up their client base before they have to pay a penny of management fee. Following this first year, franchisees will then pay £150 a month for 3 months, and then up to the maximum management fee of £300. This plan provides franchisees savings of £900.

To find out more, please call our friendly team on 0121 369 0999.