Select Your Franchise - Information on UK Franchises and Directory of Franchise Opportunities

5 Questions you should ask the franchisor

April 26th, 2017 by Brittany Lamb in Franchise Tips
 

5 Questions you should ask the franchisorSpeaking to franchisors is an important part of the due diligence process when looking to invest in a franchise. This will be your opportunity to speak openly about your queries and discover if this franchise is the one for you.

Here are 5 questions you should be asking the franchisor

What is the total cost of the franchise?

It is important you know how much you will be investing into the business in total. Most franchises will require an initial franchise fee and an ongoing fee. But also keep in mind set-up costs, marketing costs, working capital and legal fees. As each franchise operates differently, make sure you ask for the total investment cost (including VAT).

What support do you provide your franchisees?

As a franchisee, your franchisor is there to support and train you. Many franchisees come from a different sector than they invest in so it is important you are supported in all areas as necessary. This may include support in winning customers, marketing or key skills needed to do the job in hand. Find out how this training and support is given and how long the initial training will be.

How much can I expect to earn?

As for any business, it may take some time to get your franchise off the ground and start making a profit. Ask the franchisor what the reasonable estimate is for potential earnings. This will also help to tell you how long you can expect to work the franchise until you start seeing a return on your investment and how many years you will be investing.

May I speak to existing franchisees?

You want to be able to get a full understanding of the business from all viewpoints. Often franchisors will encourage you to speak to existing franchisees and you should not pass up the offer. Ask the franchisor who to speak to and how you can get into contact with them. This way to you can get an understanding from someone who has been in your position and is now working in the franchise you are interested in.

What will happen when the Franchise Agreement comes to an end?

Although you will just be starting out, it is important to keep in mind your exit strategy for when the time does come. Franchise agreements are often 5-10 years long but can be longer depending on the type of business and level of investment. You will want to ask the franchisor whether you will have the option to renew, or if you are able to pass on the franchise to someone else if that is part of your plan.

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Tips for finding the right franchise for you

April 19th, 2017 by Nick Strong in Franchise Tips
 

Tips for finding the right franchise for youIn these times of economic change many people are considering what they might do with their futures.

Many of us are driven by motives of ambition, redundancy or even preparation for retirement and are looking to franchise business as a potential way forward. Clearly franchise business and self employment is right for some and not for others.Below are some tips for finding the right franchise for you.  The tips will also help you determine if infact franchising is right for you or not.

Tips for finding the right franchise for you

  1. Determine what it is you are best at and most enjoy doing. Making a significant lifestyle move will always work best when your work is focused around doing what you enjoy and do best.
  2. Speak to your family and explain your thoughts about wanting to build your own business. Make sure that the people that will be most affected by any change in your employment status understand your motives. Make sure that your family will support you emotionally and if possible financially.
  3. Recognise that business is hard work and can have its ups and downs. Franchise business is all about replicating proven best practise so this minimises the downs and maximises the ups.  It is vital therefore that you want to FOLLOW a proven system.
  4. Visit information rich sources such as www.SelectYourFranchise.com and franchise exhibitions where you can research information about franchising and genuine franchise business options that are of interest to you.
  5. Arrange to visit the franchise systems that are of most interest to you.  Meet the key people that would train and support you.  Do you like them?  Could you work with them?  Does the visit create confidence in you?
  6. Ask for contact details of their franchisees.   Speak to the franchisees and ask about their experiences.  You could ask questions like, are you happy with the franchise?  Are you profitable?  What support do you get?  Knowing what you know, if you were me would you buy the franchise?
  7. Make a short list to identify which franchise opportunities are of genuine interest to you once you have completed your research.
  8. It is vital now to speak to your bank.  Ask the bank for a report of what they know about the franchise systems of interest to you.  The banks keep their own records of all franchise busiensses known to them.  From this information you can gain an independent report about the bank’s view of your preferred options.
  9. If you need to borrow money, banks will often lend up to 70% for a proven franchise concept.  This is because over 90% of UK franchisees run profitable businesses according to the British Franchise Association National Franchise Survey which gives the banks a lot of confidence to lend to first time franchise business owners.
  10. Finally you will need to look closely at the franchise contract from the system you have identified to move forward with.  This document governs the trading agreement between you and the franchisor.  A British Franchise Association accredited lawyer should be consulted.

When you have completed the above steps you will be in a position to decide what franchise is right for you.  It will then fall to you and the franchisor to sign contracts, pay fees and set up training and your franchise business launch programme.

Take your time, find the right franchise for you and work with the franchisor and your customers to build your own successful business.

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Researching your franchise options

April 12th, 2017 by Nick Strong in Franchise Tips
 

Researching your franchise optionsIt is always advisable to look at a number of franchise options before making a commitment. Essentially you need to know how much capital you can access, where you want to trade and the type of market you are interested in.

Be careful not to stick too closely to markets that you already know or have a lot of experience in. Most Franchisors actually prefer to find franchisees that have no experience in their sector.

The reason for this is as a new franchisee who is ‘green’ to the market, you will be very teachable and will therefore follow the franchisor’s proven system closely.

Franchise owners consistently state that an enthusiastic following of their proven system produces the most successful franchisees. It is, after all, the proven system that separates the franchisee business owner from the ‘have a go Joe’.

Following the proven know-how will always be the best route to success for any franchisee. That is why a franchisor’s intellectual property is so valuable. It quite simply is what separates you from the rest.

The important qualities a franchise buyer can bring are:

  • Enthusiasm
  • Willingness to learn
  • Ability to learn
  • Ability to implement what has been learnt
  • Dedicated to following the franchisor’s proven system
  • Enthusiasm!

Some questions to ask when looking at a franchise:

  • Is the franchise credible and well established?
  • How can I speak to franchisees about their experiences?
  • Will I get a protected trading area?
  • How much will the franchise cost?
  • What do I get for my money?
  • What are the legal issues?
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