10 things to know before buying a franchise
Nick Strong - Franchise recruitment advisor
Buying a franchise is a proven way of reducing risk and increasing the chances of success in business. This is because a franchisee (person who runs the business in their local area) is following the proven business system of the Franchise Brand.
However, buying a franchise and becoming self employed is no small commitment. Business can be challenging and there are ups and downs to manage in the journey. It is therfore vital that you prepare properly for your franchise search. Below are some suggestions that you may find helpful.
10 things to know before buying a franchise
1. Make sure that you have the backing of your family. You will need your family’s full support though out your trading life. This is especially the case in times when you are under time and cash pressure.
2. Consider your talents carefully. What are you good at? What do you enjoy in your work? Ideally look for opportunities that suit your core skills.
3. Decide what markets interest you. Franchise opportunities in the UK cover just about any market sector you can think of in the alphabet from Automotive to Web.
4. Be prepared to look outside your area of career expertise. Franchisors (brand owners) often prefer franchisees with little to know experience in their market. The reason for this is that the franchisee is usually more teachable when they depend wholly on the franchisor’s system. You are also more likely to follow the proven system when you wholly depend on it. This is important as following the proven system is vital to securing your success in business. You commit to following the system when you buy a franchise.
5. Do your research. Visit www.SelectYourFranchise.com and read about the franchise options available to you in the UK. Also read the Franchise Information section as this contains valuable insights from leading industry experts.
6. After researching the options available to you request further information and contact from franchisors of your own selection.
7. Read all further information carefully and make a short list of opportunities you wish to explore in greater depth.
8. Make appointments to visit franchisors at their head office. This gives you a insight into how the support team works and introduces you to key personalities you would work with as a franchisee.
9. Read the franchise contract carefully and use a British Franchise Association lawyer to help you understand your commitments and obligations under the contract.
10. Speak to your bank’s franchise department experts. Whether you need to borrow money of not, the banks hold their own records about franchisors and can give you their own view on any franchise you are considering.
Finally, once you have found the franchise that is right for you, work with the franchisor to prepare for training and trading launch.
All the best with your search. Follow your chosen franchise system with enthusiasm as this will help ensure your success.
Tags: Buying a franchise, franchise opportunities, The British Franchise Association
October 7th, 2009 at 8:35 pm
I definitely think that people need to purchase a franchise according to their talents. I have heard so many stories of people who want a career change and purchase a franchise in something that they know nothing about. I just shake my head and wonder how long until they fail.