My way to flexible working
Since having my daughter, she has been my priority and I don’t want to miss anything – some may think this is unrealistic but my work fits around her – most of my baking is carried out whilst she is at school and whilst she is asleep and when she’s home from school and at weekends she has my undivided attention.
I wanted this flexibility for others too.
My vision with the Homebaked Gift Company is to have a team of enthusiastic people with similar priorities to mine, who want to build a business within their local community, being part of a UK team of baking enthusiasts, being guided every step of the way by my expertise (ultimately benefitting local good causes).
With this in mind I researched the benefits of replicating my success through either a Franchise or a Licence.
Franchising versus Licensing. What’s the difference?
The advantage of starting a new business via a franchise or licence is that you can start out with a recognised brand which increases the opportunity to start your business strongly and quickly according to a proven and profitable concept and approach.
A franchisor is a business with a strong brand and well-established, repeatable business model which reproduces the business model via franchising. A franchisee is the person who purchases the rights to use the company's business name and operate the business model according to the franchise agreement.
A franchise offers not simply the brand name in return for a franchise fee but the franchisor often provides (and charges for) supplies, help with identifying a physical location, assistance with obtaining start-up funding, marketing and training support and a detailed business and operational manual specifying precisely how the franchise should and must operate. The franchisee has the benefit of having immediately successful and proven processes to apply and a brand name which enables immediate sales. One of the disadvantages for the franchisee is that the franchisor has the opportunity to exert considerable control over the franchisee in terms of how the business is run and marketed.
A business owner, the licensor grants the licensee the right to use the brand name and idea (intellectual property) via a licence agreement.
A licensing agreement is a simpler arrangement where the licensee pays for the use of a name, logo and idea. There may even be no other further support other than to use the licenced intellectual property. (Not so in the example of the Homebaked Gift company, I also offer an exclusive territory, training, on-going support, an operating manual and starter kit, and uniquely for a licence, a monthly new-product pack.) The licensee is able to use their knowledge and experience of local circumstances to operate the business in the best way for them (provided they adhere to the licence agreement). The licensee has the freedom to operate the business much more in their own way, so it is highly scalable from micro to larger business depending on the ambitions of the licensee.
Franchising and licensing. It’s about replicating success by minimising risk
People who take up a franchise or a licence are often looking for freedom from employment, flexible working, and a way to invest in their skills and interests, without the risk of starting a completely unproven business concept from scratch.
It is a way to quickly get started in business with a proven concept doing something you love, in a flexible working environment.
Ultimately I came to the decision that I wanted something affordable for all, as my business ventures have always been low risk and flexible and so I have taken the Licence route. Franchises have strict procedures to be adhered to whereas Licences have flexibility to add you own twist on things.
My other considerations were that two of the key differences between Franchises and Licences are the cost and the commitment.
Franchises are usually 5+ years whereas Licences are usually 2 years.
Franchises are generally £5000+ whereas my 2 year licence is under £1,000.
So if you are interested in this astonishingly simple way to flexible working through the affordable licensing of a proven approach and are keen to find out more, please download the How to become a bake expert prospectus.