Detailed Analysis: NHS and Franchise Business Models

This report provides a comparative analysis of the National Health Service (NHS) and franchise business models. It begins by defining the NHS as a government-funded healthcare provider in the UK, offering services at reduced or negligible costs, with the Royal London Hospital serving as an example. The report then defines a franchise as an expansion strategy, where a franchisor allows franchisees to use their brand and sell products in exchange for payments, using Subway as an example. The report highlights the key differences between the NHS and franchise models, including ownership (public vs. private), funding (taxes vs. franchisee payments), and profit motives. The conclusion summarizes the key differences between the NHS and franchise models, with references to supporting literature.

FRNCHISE AND NHS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
NHS.................................................................................................................................................3
FRANCHISE...................................................................................................................................3
DIFFERENCE BETWEEN NHS AND FRANCHISE...................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The terms franchise and NHS will be evaluated and their features will be analysed by taking
different real life examples.
NHS
NHS is the largest pubic organisation for providing healthcare services in UK and is a
government funded healthcare services provider that gives medical services to everyone in UK at
reduced costs or negligible costs (England N.H.S., 2019).
For instance, the Royal London Hospital is a part of the Bart’s Health NHS Trust and gives
services to people across London and elsewhere as well. It acts as a large network in the world
for giving emergency and trauma services and is known to incorporate biggest child clinics as
well.
FRANCHISE
The term franchise indicates an expansion strategy that is generally adopted by organisations
for international expansion of their business (Hoy, Stanworth and Purdy, 2017). Usually globally
recognised companies accept this form of operation where a franchisor company can allow
franchisee in other country to use company’s trademark, knowledge, branded products etc. and
sell them in return of fixed payment.
For instance, Subway is a private restaurant franchisee that is operating in more than 100
countries through this method at 41512 locations. It was ranked 1st on Fastest Growing
Franchisee in 2015. It mainly gains returns on the basis of percentage of sales that have been
done in the franchisee stores.
DIFFERENCE BETWEEN NHS AND FRANCHISE
NHS Franchise
 It operates as public sector
organisation with government
owning.
 Royal London Hospital is a not for
profit organisation and earns funding
by taxes.
 It is used by private organisations mainly
and is owned by private shareholders
(Petimar and et.al., 2019).
 Subway operates with profit motive and
revenue is earned by payments against
franchisee i.e. privately.
3

CONCLUSION
Research concludes that NHS and franchise are two different types of business organisations
and examples of Royal London Hospital and Subway was taken to evaluate the differences
between them.
4

REFERENCES
Books and Journals
England, N.H.S., 2019. The NHS long term plan.
Hoy, F., Stanworth, J. and Purdy, D., 2017. An entrepreneurial slant to franchise research. The
Blackwell handbook of entrepreneurship, pp.408-432.
Petimar, J., and et.al., 2019. Estimating the effect of calorie menu labeling on calories purchased
in a large restaurant franchise in the southern United States: quasi-experimental
study. Bmj. 367. p.l5837.
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