In the United Kingdom, there is no specific legislation on deductibles; Franchises are subject to the same laws that apply to other businesses. [49] There is some self-regulation on the part of the British Franchise Association (BFA), the Quality Franchise Association (QFA) and the Approved Franchise Association (AFA). Franchisors, franchisees and end customers benefit from technological advances. – The new owner of the franchise benefits from the association with the main company of the franchise. The franchisor offers a lot of business experience that would take years before the average businessman acquired. There are many advantages to investing in a franchise, and also disadvantages. Among the widely recognized advantages is a prefabricated business formula that must follow. A franchise comes with proven products and services on the market and, in many cases, established brand awareness. If you`re a McDonald`s franchisee, decisions have already been made about the products they sell, how you design your business, or even how you design your employee uniforms. Some franchisors offer training and financial plans or lists of approved suppliers. But while franchises come with a formula and a track record, success is never guaranteed. Other companies have tried franchising in one way or another, according to Singer`s experience.

A few decades later, for example, General Motors Corporation launched a somewhat successful franchising operation to raise capital. Louis K. Liggett may be the father of modern franchising. In 1902, Liggett invited a group of drug addicts to join a “drug cooperative.” As he explained, they could increase their profits by paying less for their purchases, especially if they set up their own production company. His idea was to market private labeling products. About 40 drug dealers raised $4,000 of their own money and took the name “Rexall”. Turnover increased and Rexall became a franchisor. The success of the chain has established a model for other franchisors. Franchisors benefit from franchise agreements because they allow companies to grow much faster than they otherwise could.

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