The likes of McDonald’s and Starbucks are among the biggest businesses in the world, and it’s also widely-known that they operate the franchise business model which, according to the British Franchise Association, is a model that generates annual turnover of an estimated £17.2 billion.
But there are plenty of household names that belong to this business model and Sourced Franchise, the UK’s leading property investment platform, has highlighted some of the best known companies that most people don’t know are also franchises.
IKEA
That’s right. Everyone’s favourite Swedish furniture and meatball company is built entirely on the franchise business model. Of the c.460 IKEA shops worldwide, only one – in the Netherlands – is not a franchise. All of the rest are owned and operated by franchisees who essentially run their own business while benefiting from the brand and product of the flat-pack giant.
Clarks
Clarks has been a cornerstone of the UK highstreet for 200 years and currently sells more than 50 million pairs of shoes every year.
Clarks started incorporating the franchise model 30 years ago and today, of the 1,400 shops around the world, 450 are franchises.
Levis
Levis claims to have made the very first pair of blue denim jeans in 1873. It took until 1953 to establish the global brand we know and love today, while franchising began in 1965, helping Levis become one of the most dominant fashion brands on the planet.
Cash Converters
The personal loans, pawnbroker, and second-hand goods seller is a mainstay of the UK highstreet but was actually founded in Australia in 1984 and now has more than 700 locations across the world.
Today, Cash Converters mixes corporately owned shops with franchises, of which there are around 200 in the UK.
Toni & Guy
Toni & Guy started in 1963 with one hair salon in London. From there, it has grown to encompass almost 700 locations across 40 countries. Each one is owned and operated by franchisees.
The Body Shop
Founded in 1976, the ethically-sourced beauty brand has been franchising since 1978. It now has 3,000 locations across 63 countries, 1,900 of which are franchises.
Sourced Franchise Director, Chris Kirkwood said, “The franchise model has proven time and time again to be hugely successful. Whether it’s a massive global brand or a handful of localised outlets, giving smart and self-sufficient business owners the benefits of a well-established brand to work with often leads to great things.
Even for the most brilliant entrepreneurs, building a business from scratch is incredibly difficult and wildly expensive from day one. The franchise model gives you instant brand recognition, tried and tested marketing processes, and existing customer loyalty, all of which makes success much more achievable.
As our list proves, the sky really can be the limit and with the existing foundations that a franchise provides, you can turn your business into a household name.”
