If you often find yourself thinking ‘I could do a better job of this business’ then taking on a franchise could be a great move.
When starting a business from scratch there’s always a long way to go before you have an established place in the market. However, with a franchise, you’re buying an established name, with established operational, sales and marketing procedures that are proven to work. You are also buying a whole range of support and training opportunities for yourself as a business person.
However, it isn’t always plain sailing and the British Franchise Association has put together a list of priorities to consider before taking the plunge and buying into a franchise.
1. Take into account all the costs involved in running the franchise, not just the initial buy-in amount, and ask if you can really afford it. You’ll need working capital to keep the franchise running on a daily basis and you will have to pay a percentage of your sales income to the franchisor each month.
2. Talk to existing franchisees in the network. You should have access to other people working within the franchise network you are interested in. If you are only given one name, be cautious.
3. Make sure you are offered the right level of training. If you feel you will need to undergo training in order to make a success of the franchise, make sure this is included and offered.
4. Ask a franchise lawyer to check over your contract. This is a no-brainer really and could help you to save valuable time and money in the long run.
5. Ensure you understand the franchise. Do some research on how the franchise works and what is involved in running the business. You will need to have experience or an aptitude for the kind of business and work involved. Go for a franchise that appeals to your personality and your professional experience.
Taking on a franchise can be a fast route to success for those looking to start their own businesses. However, ensure you take advantage of the support offered by the British Franchise Association to help you make the right decision and advise you on your journey.