How to buy a franchise in recession
As we move into the summer uncertainty hangs in the air for jobs and the economy in the UK. There has been a slight recovery over the spring and some green shoots have been seen. House values have gone up slightly by over in the past quater and banks have capital to lend again. However, the fallout of job losses from hard hit sectors of the economy continues. So where is the light at the end of the tunnel?
Firstly not every area of the economy has been hit hard. Many well run businesses are doing well in the recession. The key focus for successful business in recession is on value for customers. People are looking for a good deal at the moment and rewarding businesses that offer them a good deal.
For many people that have been thinking about starting their own businesses, self employment in franchise business may now be a good time. So, how do you go about buying a franchise during this recession?
How to buy a franchise in recession
1. Discuss your ideas with your family and find out if they are prepared to support you in your self employment aspirations. Agree parameters for moving forward including lifestyle and financial considerations.
2. Visit information resource websites such and www.SelectYourFranchise.com and research options available.
3. Read options available and ask yourself, “Can I see myself doing this or that”?
4. Commit to requesting further information from options that meet your financial and lifestyle considerations.
5. Read the information your chosen franchisors send you and decide which ones to visit. Ask the franchisors you visit for an outline of how their franchisees are trading in this recession. What additional support and innovation has been provided during this time?
6. During your meeting with the franchisor, and his team, ask for contact details of their franchisees. Contact the franchisees of your choosing and ask how they are trading during the recession and what support they have received from the franchisor.
7. Identify selections where you find happy and profitable franchisees that are being supported well by their franchsiors.
8. Out of the options you identify think which system you will enjoy working in the most and which one will potentially give you the best return on your time and investment.Focus on this option.
9. Make sure you take advise from a franchise lawyer. Every franchisor will ask you to sign a legal agreement that exists to manage the relationship between franchisor and franchisee. You must be happy with the conditions in the agreement before you sign.
10. Contact the franchise departments of the leading banks. Ones with specialist franchise departments include RBS, NatWest, HSBC and Lloyd’s TSB.
Finally, once you have the funds secured and have agreed to sign the contract you are ready to start training and get ready for trading.
Remember, franchising works well when you follow the franchsiors proven system closely and enthusiastically. Focus, follow and prosper as your chosen system, personal ability and market allows.
Tags: Buy a franchise, How to buy, nick strong, Recession options
July 27th, 2009 at 11:55 am
the Economic Recession has been pretty hard on us. some of my friends lost their job because of the massive job cuts. i just hope that our economy becomes better in the following years.
August 7th, 2009 at 5:43 am
Running a franchise successfully starts with buying a successful franchise. It’s hard to turn sow’s ears into silk purses. This means before investing in any franchise opportunity, you must do the proper research. Not only must you determine whether or not the franchise is a profitable business model, you also have to make sure it will work in your area, you won’t saturate the market and that the franchise agreement you enter into gives you reasonable rights to the franchise name. By doing the research in these areas, and talking to people who have already owned franchises and the opportunities you’re looking and their examples will set you on the right track.