Do your homework on northern franchise opportunities (Daily Mail franchise story)

DO YOUR HOMEWORK ON NORTHERN OPPORTUNITIES    

By: Linda Whitney

SCOTTISH Franchise Week (June 1-5) is a chance to find out more about starting a franchise in Scotland. The week includes a business breakfast at the Glasgow Hilton on June 4, and a franchise showcase, including seminars, on June 5 at the Royal Concert Hall, Glasgow. 'Franchising in Scotland is very buoyant — the recession has had a positive effect,' says David Kaye, franchise lawyer at Harper Macleod. 'Many companies are franchising to expand, and more franchisees are coming forward.' There are 476 franchise brands to choose from in Scotland, up from 445 last year. ¦ REGISTER on 0870 777 1082 or click here., quoting promo code PRG

A FRANCHISE could be the biggest investment of your life, so check out any potential opportunities carefully.

'Franchises remain inherently more successful than their non-franchise counterparts, but you need to choose with caution,' says Tom Endean, of the British Franchise Association (BFA). Things to check include:

WHETHER the sector is holding up in the recession. 'Look for a business that's busy in good times and bad,' says Tony Bowman of e-tyres, the £35,000 online tyre sales franchise.

'Demand for tyres is up, as drivers keep their old cars longer and shop around online.'

WHETHER you can afford it — both the initial investment plus capital to pay bills until you are in profit.

THE company's standing with any industry regulators. For instance, all domiciliary care sector franchises must register with the Commission for Social Care Inspection (CSCI). Kevin Lewis of the Caremark fran-chissays: 'Check the CSCI website to see what proportion of the company's franchisees have gained registration and how long it took.' Caremark is looking for more franchisees with £29,500 to invest.

THE history and financial standing of the franchisor. See www.companieshouse.gov.uk as a start.

WHETHER the franchise suits your lifestyle. Find out what hours are you prepared to work?

WHAT existing franchisees think of the business. Ex-teachers Karen and Greg Baines checked out the Camping and Caravanning Club. 'Its track record of success convinced us it would be reasonably secure,' says Karen. The club wants fit franchisees who enjoy the outdoor life and like dealing with people. Cost is £ 35,000.

HOW you make money. 'Ask about residual income,' says Allan Mannion from £ 15,000 franchise Pink Connect, selling telecoms to businesses. 'Are you making just a one-off sale or will each bring future income?'

SELECT: 01582 811654,

e-tyres 0800 028 9000,

Caremark 01798 873 770,

Camping and Caravanning Club 08701 287240,

Pink Connect 0800 040 7027.

FRANCHISE

'WE SPENT eight weeks checking the background of our prospective franchise,' says Graham Rowan, who with his wife Lorraine is the Central Scotland Select group franchisee. The couple (pictured) took over the existing Glasgow office in 2006 and now have offices in Edinburgh and Falkirk, each offering three Select group recruitment services - Select Appointments (office staff), Parkhouse Recruitment (industrial, technical and engineering staff) and Select Hospitality.

'We found the franchise at the Scottish franchise exhibition, but before we invested, we checked its potential for profit, trading and financial background, its marketing materials and activities, and the state of the recruitment market,' says Graham, 43. With senior management backgrounds in the financial services industry, both had experience of recruiting staff, so they felt it suited their skills. The couple also examined the demographics of the area. He says: 'Do plenty of research, and ensure you meet existing franchisees. I met those put forward by the company and then asked to meet others. Select readily agreed, which gave me confidence.' Select is looking for more franchisees. Investment is £31,750 plus start-up costs.