Finding the best Franchise Opportunity for you
Joel Caws - Technical Director, Select Your Franchise
In these times of economic uncertainty with unemployment figures growing, many are finding themselves out of work or facing threat of redundancy. Getting back into employment is not easy at these times either since many companies are looking at ways of cost saving or reducing their wage bills, not increasing them.
Franchising can therefore represent a good choice for many as they can effectively be a form of supported self-employment. Although a franchise opportunity presents a business ownership option, the franchisor should typically provide training and on going support as well as a proven franchise system on which to build a business.
How then can you find the best franchise opportunity for you? What are some of the key factors that need to be considered?
Proven System
The heart of a franchise business is its proven system. By piloting a business idea, a franchisor should prove that their business model and formula works and is profitable. This can then be replicated by anyone who wishes to buy into the franchise idea and dedicate themselves to running the proven system. Take a good look at the business idea and look to see if it has a proven track record.
Track record
The track record can be determined by talking to the franchisor and asking for details of their pilot businesses and how well they performed. Talking to any existing franchisees is also essential to see how the franchise system is working for them and if they are trading profitably. You can also talk to the franchise departments of some of the major high street banks. If they have knowledge of the franchise, and are already lending finance to current franchisees, this can be a good sign.
Finance
Its also important to look at what you can afford. Any investment capital you have yourself, can be combined with any lending that a bank can provide, so speak to some of the major high street banks about lending to assess what your investment potential is. This will help you then to research franchise opportunities that fall within your budget and not waste time looking at those you cannot afford.
Gut Feel
Its also important to meet the franchisor face-to-face and determine how you feel about working with them. A franchise isn’t a completely independent option, but one that will require interaction between you as the franchise business operator, or franchisee, and the franchise brand owner, or franchisor.
Will you enjoy doing the work?
Its often a good idea to select franchise opportunities that you think you will find interesting. Many of the franchise directory websites have industry types which allow you to select industries that are of interest. For instance, if you enjoy driving and meeting people and prefer not to always be stuck in an office then a van based franchise might well suit your character. Similarly, if you prefer dealing with consumers rather than companies, a retail franchise could be a good option.
These fairly common-sense tips will help you to find the best franchise opportunity for you, although its also important to talk to a franchise legal expert as there will be legal contracts involved in taking on a franchise. Once you have found it, dedicate yourself to working hard at the franchise system to replicate the success of other franchisees.
Tags: franchise, franchise business, franchise opportunities, joel caws
