Being employed gives you a certain comfort in that you have a position and a role that is defined, and remuneration for carrying out said role. By and large, however, employees have very little say in the vision, strategy and management of the company. When you take on a franchise, however, the situation is almost 100 per cent reversed. In a franchise business, it is you who makes the decisions, you who will have a vision and a strategy to devise and follow, and you who takes responsibility.
You are, though, not alone and good franchising comes from the successful marriage of the franchisor and the franchisee. With franchising, you get all the benefits of ‘corporate’ head office support and you are part of a network of people who can swap/share best practice, advice and insights.
The franchisor is there to provide guidance and advice, but also training, marketing tools, programmes, collateral, procurement (if relevant), plus technical and sales support throughout your period in the franchise. Franchising is a commitment and should not be rushed or done on the spur of the moment. Essentially, there are six steps to selecting the right franchise.
A good franchise should have:
A franchise is an investment – it is not a job! You need, therefore, to determine exactly how much is required to invest and, most importantly, how much you’ve actually got. There is no point taking on a business that will only generate half of what you need. Also, beware of over extending yourself – be sure you can raise the requisite funding and make the repayments through the business.
Evaluating a franchise is all about asking the right questions – such as:
Hopefully, you have by now found a number of franchise companies that transcend the initial aforementioned obstacles. That is, they have proven history, good systems, effective training, bfa membership etc; they are all businesses you think you may be interested in and for which you have some or most of the skills necessary; the investment required is within your compass and the industry meets your specification in that it is large, growing and sustainable. Next, you need to compare and judge each opportunity. In order to do this, you should meet with the franchisor and ask about:
Franchising is a commitment and should not be rushed or done on the spur of the moment”
The franchise agreement is a legal document and a specialised area, and it is always recommended that you use a solicitor with proven experience in franchising. A reputable accountant can advise on how to set the business up, the various tax implications, business planning and ongoing financial matters.
Ask yourself 10 final questions:
The Bardon Group is the UK's leading multi-brand franchisor.