How to Select a Franchise
Nick Strong - Franchise recruitment advisor
During times of financial difficulty many people are contemplating what they might do with their futures. Many of us are driven by the impulses of being made redundant, ambition or sometimes retirement preparation and looking at franchise business as a route to fulfillment. Without a doubt franchise business and self employment is not right for everyone.
The hints following are a guide to help you decide on the right franchise for you. The tips will help you decide if in fact franchising is right for you or not.
- Determine what it is you enjoy doing and what your strengths are. Deciding on a significant lifestyle change will always work best if your work revolves around doing what you enjoy and do best.
- Speak to your family and explain your thoughts about you desire to build your own business. Its important that the people that will be most affected by any change in your employment status are clear on your reasoning. Be sure that your family will be there for you financially if necessary but more importantly, emotionally.
- Admit that running any business is hard work and like anything in life has its ups and downs. Replicating a proven system is what franchise business is all about so this minimises the downs and makes the most of the ups. It is vital therefore that you want to follow a system that has been tried and tested.
- Start your research online by visiting franchise directory sites and franchise exhibitions where you can research information about franchising and genuine franchise businesses that could be of interest to you.
- Arrange to visit the franchise systems that interest you the most. Meet the key people that would support and provide training to you. Do you get on well with them? Can you see yourself working with them? Does the visit create confidence in you?
- Obtain permission to speak to some of their franchisees. Speak to the franchisees and ask about their experiences. Ask questions such as, do you feel happy with running this franchise? Are you profitable? How does the franchisor support you? Has the recession affected your business sales or profits? Would you buy this franchise if you were me?
- Having completed your research, decide which franchise opportunities are of real interest to you. Make a short list.
- The next step is to speak to a lender. Ask the bank for their opinion of the franchise systems on your short list. Lenders tend to keep records about franchises they know about. With this information you can gain an independent report about the bank’s opinion of your preferred options.
- If you need to borrow money banks will often lend up to 70% for a proven franchise concept. This is by virtue of the fact that over 90% of UK franchisees run profitable businesses according to the British Franchise Association National Franchise Survey and this gives the banks a lot of confidence to provide lending to first time franchise business owners.
- Finally you will need to look closely at the franchise contract which your chosen franchisor will present you with. The franchise contract rules the agreement to trade between the franchisor and yourself. Consulting a British Franchise Association accredited lawyer is highly recommended.
After completing the above steps you should be well positioned to make a choice of which franchise is right for you. It will then fall to you and the franchisor to sign contracts, arrangement payment of fees, book in for training and agree on your franchise business launch programme.
Don’t be rushed, find the right franchise to suit you and then work with the franchisor and your customers to build your own successful business.
Tags: British Franchise Association, franchise, franchise business, nick strong, Select Your Franchise, success
October 20th, 2009 at 5:43 pm
One should determine if he/she is going to look for a home-based or bricks and mortor location. If going out to look for a location, a commercial real estate agent’s services should be engaged, as she/he will find locations and negotiate pertinent information. Obviously if the franchisor is more involved in helping you find a location the better.
The real estate aspect of the franchise generally makes or breaks the business.