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This section gives information on the franchise sector in Ireland.

The Franchise Sector in Ireland

This outline guide is from the Irish Franchise Association

The term 'franchising' has been used to describe many different forms of business relationships, including licensing, distributor agreements and agency arrangements. In its most familiar sense, the term ?franchise? 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 as their own business under the brand of the franchisor, following a proven business model. The franchisee also receives a 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 (including a predetermined agreement length, with renewal options).

The principle is simple - some companies choose to grow, not by developing in the conventional way but, by granting a franchise license to others to sell their product or service. There are clear advantages to this:

  • You don't have to come up with a new idea - someone else has had it and tested it too!
  • Larger, well-established franchise businesses will often have national advertising campaigns and a solid trading name
  • Good franchise businesses will offer comprehensive training programmes in sales and, indeed, all business skills
  • All franchisors provide an up to date operational guidelines in the form of an operations manual as a reference document for the franchisees.
  • Good franchise businesses can also help secure funding for your investment as well as, for example, discounted bulk-purchases for outlets when you are in operation
  • If customers are aware that you are running a franchise business, they will understand that you offer the best possible value for money and a consistent quality of service - although you run your 'own show', you are part of a much larger organisation
  • Good franchisors also provide support to their franchisees and the franchise network on a pre determined basis.

For further information visit the Irish Franchise Association website

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