In simple terms there are four ways in which it can be used.

1. Creation of a new business specifically for franchisors

An entirely new product or service can be created specifically for franchising. This has been done with businesses such as Snappy Snaps in the UK - which provides 1 hour film processing services and retails associated products such as picture frames and the like in the high street. Dublcheck is another example, it operates a contract cleaning business. Very often a local businessman identifies a successful franchised concept in another market such as the USA, and decides to create a similar concept in his own jurisdiction.

2. Development of an existing business

This is perhaps the most usual way of evolving a franchise. An existing product or service is further developed by use of the franchising method. Such businesses include the Dyno-rod drain cleaning business, the restaurant businesses and so on.

3. Conversion of existing business to the franchise format

Sometimes an established business can decide to convert its managed outlets to franchised outlets. The Thresher off-licence chain in the UK is a good example of this. Such decisions are usually taken because of a desire to accelerate growth and reduce overheads without sacrificing quality control.

4. Importation

This is a very common method of evolving a franchise in the specific territory. The United States is the great exporter of franchise concepts around the world. Brands such as KFC, Holiday Inns, Hilton Hotels, Pizza Hut and McDonalds are all American exports. Body Shop is an example of a British franchise that has established itself around the world.

5. What types of businesses are franchised?

The following list of businesses that have been successfully franchised gives some idea of what can be franchised.

Automotive products and services

Automotive supplies, tyres, parts, tools, etc., axle alignment, car valeting, engine tuning, exhaust systems, rust proofing, sun-roofing fitting, tax hire, transmission repairs, tyre remoulding, vehicle cleaning, vehicle rental, vehicle repair, vehicle security, windscreen replacement, windscreen repair, chauffeur hire.

Business aids and services

Accountancy, bookkeeping, advertising services, information bureaux, display cards, postal centres, business brokerage, business counselling, computer bureaux, data processing, financial and debt counselling, job recruitment, temporary staff, office communications, photographic services, tax services, word processing bureaux.

Construction, home improvement and maintenance products and services

Air conditioning services, bathrooms and bath renovations, brick and stone pointing, ceiling cleaning, chimney lining, heat and energy conservation, condensation control, damp proofing, domestic boiler servicing, double glazing, draught exclusion, drain cleaning, electrical services, environmental cleaning, fireplaces, fitted kitchens, flooring materials and laying, garage doors and other doors, gutters, insulation, loft conversion, pavement surface repairs, plumbing, ready-mixed concrete, roof insulation and repair, tiles, timber preservations, water softening equipment.

Education services

Educational tuition, kindergartens, management skill training, secretarial training.

Entertainment, recreation, etc.

Hotels, whirlpools, adventure games indoors and outdoors.

Fast foods, restaurants and takeaways

Chicken, coffee, croissants, hamburgers, ice cream, orange juice, pancakes, pizzas, popcorn, potatoes, sandwiches, steaks, general restaurants.

Food stalls

Baked goods, confectionery, convenience stores, dairy produce, eggs, fish, grocery stores, health foods, fresh juices.

Health, medical and beauty care

Acupuncture and hypnotherapy, ambulance service, beauty centre, fitness health clubs and studios, hairdressing, optical goods, skin care, fitness equipment.

Household services

Carpet cleaning, curtain design and fitting, domestic cleaning services, furniture and fabric cleaning, furniture stripping and restoration, upholstery and vinyl repair.

Retailing (products and services not specified elsewhere)

Aquatic centres, bag stores and luggage, batteries, bridal wear, maternity wear, fashion wear, sports wear, ties, formal wear for sale and for hire, computer hardware and software, cosmetics and beauty products, dry cleaning, giftware, housewares and furnishings, knitting wools, instant print and copying shops, linen, original art, personalised badges, picture framing, photographic development, family histories, sewing machines, telephones and car telephone services, video films and equipment, window blinds.

Miscellaneous

Driving schools, equipment leasing and hire, estate agencies, publishing, local newspapers, etc., security equipment services, tent hire and instant accommodation hire, travel agencies, veterinary support services, wholesaling of carpets, biscuits, electrical and video equipment, will writing and storage.