Can a Franchise Be Formed as a Partnership?

Franchising is an exciting opportunity for business ownership. You can leverage the franchisor’s existing name, receive ongoing training and guidance, and have a robust support network behind you. Still, even with these advantages, starting out on your own can feel a bit daunting.

The good news? You don’t have to!

Franchise partnerships let you join forces with a trusted partner, sharing the challenges and rewards of running your own business. While it might not be the perfect fit for everyone, it’s the path a lot of aspiring franchise owners prefer to go down.

In this guide, we’ll explore the benefits and potential drawbacks of franchise partnerships, as well as key considerations to keep in mind before taking the plunge.

Why Partner Up for a Franchise?

Owning a franchise with a partner offers several advantages, such as:

  • Franchises can require a significant initial investment. Partnering up allows you to split the costs, making the franchise more accessible financially. This shared investment also reduces the risk for each individual involved.
  • It’s unlikely one person has all the skills needed to excel in every aspect of running a business. A partner can complement your strengths and help address your weaknesses. For example, if you’re a natural salesperson, your partner might be strong in finance and operations.
  • Running a franchise is a time-consuming endeavour. With a partner, you can share the responsibilities of daily operations, marketing, staffing, and other tasks. This allows for more manageable workloads and creates a system of checks and balances for decision-making.
  • Being an entrepreneur can be isolating at times. Having a partner provides a built-in support system, someone with whom you can bounce ideas off and problem solve. A good partner can be a source of motivation and encouragement, especially during challenging times.
  • With two people working towards the same goals, you can potentially achieve milestones and grow the business faster. This can be especially true if your partner brings a different network of contacts or a fresh perspective to the table.

What Are the Drawbacks of Partnering for a Franchise?

Franchises with partners offer advantages, but there are also some potential drawbacks to consider before you team up:

  • It’s not unusual for disagreements about operations, finances, or growth strategies to arise, especially if the partnership lacks clear communication and defined roles. Unresolved conflict can damage the partnership and harm the business.
  • With a partner, you split the profits, but also relinquish some control over decision-making. The franchise agreement itself limits some control, and a partner adds another layer of compromise.
  • Just because you know someone well doesn’t necessarily mean they’ll be a good business partner. Clashing work styles or personalities can create a stressful work environment and hinder the success of the franchise.
  • If things don’t work out, dissolving a partnership can be complicated and expensive. Buy-out clauses or predetermined exit strategies should be established in your partnership agreement from the outset.
  • As a partner, you won’t have the same level of individual freedom you might have as a sole franchise owner. Decisions will need to be made collaboratively, and you’ll be accountable to your partner as well as the franchisor.

What to Do Before You Dive In

Like jumping into any business partnership, careful planning is essential. Here’s what you need to think about before you dive into a franchise partnership:

1. Choose Your Partner Wisely

This is your long-term business partner, so choose someone you trust implicitly and who shares your vision for the future of the franchise. You’ll be spending a lot of time together, so make sure you enjoy working with each other and are able to communicate openly and honestly.

It’s also important to clearly define each partner’s roles and responsibilities from the get-go. This will help avoid confusion, reduce conflicts, and make sure everything gets done efficiently.

2. Draft a Partnership Agreement

A partnership agreement is a legal document that outlines the essential aspects of your partnership. It should cover things like profit sharing, how responsibilities will be divided, and how you’ll handle disagreements or dissolve the partnership if necessary. Having a lawyer experienced in franchise partnerships help draft the agreement is a good idea, as they can make sure it protects both of your interests.

3. Understand the Franchisor’s Requirements

Some franchisors may have specific requirements or limitations regarding partnerships, so be sure to understand these fully before entering into an agreement with a partner. Both you and your partner need to be in complete agreement with the terms of the franchise agreement. You don’t want any no surprises down the road!

Prokil: Your Path to Franchise Ownership Success

Whether you choose to go into business with a partner or go it alone, there’s one even bigger factor to consider: choosing the perfect franchise. And guess what? You might have just found it.

Prokil offers you the chance to join a thriving property care franchise with a rock-solid reputation in the South of the UK. Our franchise package is all-inclusive, giving you the support and guidance you need to succeed. Here’s what you get as a Prokil Franchise Partner:

  • The chance to leverage Prokil’s established name and loyal customer base
  • Exclusive territory rights in your chosen area
  • Proven growth model developed over 50 years
  • Comprehensive training and support at every step
  • Targeted marketing campaigns to connect you with local customers
  • Steep discounts on high-end equipment and materials
  • The flexibility to set your own hours and work style
  • An industry that’s in demand even during economic downturns
  • Whether you’re looking to team up with a partner or go solo, a Prokil franchise could be your ideal match.

Ready to explore? Find out if you qualify here, then book a free consultation online or call us on 01202 515566 today!