10 things to discover before buying your franchise
10 things to discover before buying your franchise
2. Make sure you have the full support of your family – the additional responsibilities and demands on your time will inevitably cause some strain. Although we are always optimistic in business there are times where it can be tough. At these times it is vital to have the unity of those closest to you.
3. Choose some existing franchisees to talk to – ask how their business is performing and what support and service is being provided by the franchisor. Are the franchisees happy? What do they like and dislike about running the franchise?
4. For new franchisors, check they have run a pilot, how long did it operate, is it still trading and what has it achieved in financial terms? If no pilot was operated how does the franchisor know the franchise and therefore will you be successful? Taking on a franchise reduces risk in business as the system is tried and tested. Make sure that you are happy with the proven track record available for you to inspect.
5. Examine how well known the franchise and its service/product are. If it is a new franchise brand you can ask what customer surveys they have carried out. It is always good to see customer comments on a service. In business the customer is king so their comments really matter. A good reputation is a head start in business.
6. Look at the market as a whole – find out who your competitors are and how strong their position is. What is unique about the franchise proposition? If the brand is not well known you need to see what you can take to market as their franchisee.
7. Examine costs closely, in particular the franchise fee and monthly management fee, and whether they are reasonable and value for money; will the margins be sufficient to support the business after payment of regular fees to the franchisor? As a guide, the average franchise fee is £20,000, although this is skewed in view of a small percentage of higher figures. Ongoing fees average 11.4%.
8. Is the training provided by the franchisor sufficient to enable you to run the business successfully? The training should outline everything you need to know about the business and how to build it day by day.
9. Seek professional advice from an accountant about income and profit projections and from an accountant about income projections and from a solicitor about the legal agreement. Both should have a good understanding of franchising and preferably be affiliated to the British Franchise Association.
10. Talk to the Franchise sections of the main lending banks about the financial aspects of running a franchise and ask them to put you in touch with your nearest area franchise manager. You should also contact the British Franchise Association.
10 things to discover before buying your franchise - To learn more about this author, visit Nick Strong's Website.
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1. Take a good overview at your strengths and weaknesses – are you sure you have the capacity, temperament and skills to run your own business? Marketing and selling skills are becoming more important in running a franchise. When you run your own franchise business you need to think carefully about how you manage your time. Can you prioritise well and focus on activity that will drive your business forward?
2. Make sure you have the full support of your family – the additional responsibilities and demands on your time will inevitably cause some strain. Although we are always optimistic in business there are times where it can be tough. At these times it is vital to have the unity of those closest to you.
3. Choose some existing franchisees to talk to – ask how their business is performing and what support and service is being provided by the franchisor. Are the franchisees happy? What do they like and dislike about running the franchise?
4. For new franchisors, check they have run a pilot, how long did it operate, is it still trading and what has it achieved in financial terms? If no pilot was operated how does the franchisor know the franchise and therefore will you be successful? Taking on a franchise reduces risk in business as the system is tried and tested. Make sure that you are happy with the proven track record available for you to inspect.
5. Examine how well known the franchise and its service/product are. If it is a new franchise brand you can ask what customer surveys they have carried out. It is always good to see customer comments on a service. In business the customer is king so their comments really matter. A good reputation is a head start in business.
6. Look at the market as a whole – find out who your competitors are and how strong their position is. What is unique about the franchise proposition? If the brand is not well known you need to see what you can take to market as their franchisee.
7. Examine costs closely, in particular the franchise fee and monthly management fee, and whether they are reasonable and value for money; will the margins be sufficient to support the business after payment of regular fees to the franchisor? As a guide, the average franchise fee is £20,000, although this is skewed in view of a small percentage of higher figures. Ongoing fees average 11.4%.
8. Is the training provided by the franchisor sufficient to enable you to run the business successfully? The training should outline everything you need to know about the business and how to build it day by day.
9. Seek professional advice from an accountant about income and profit projections and from an accountant about income projections and from a solicitor about the legal agreement. Both should have a good understanding of franchising and preferably be affiliated to the British Franchise Association.
10. Talk to the Franchise sections of the main lending banks about the financial aspects of running a franchise and ask them to put you in touch with your nearest area franchise manager. You should also contact the British Franchise Association.
10 things to discover before buying your franchise - To learn more about this author, visit Nick Strong's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Staging DivaDebra Gould, aka The Staging Diva®, is President of Six Elements Inc., an internationally recognized home staging company. Inspired by many requests from aspiring home stagers wanting to start similar businesses, Gould created the Staging Diva Home Staging Business Training Program. Gould has trained over 1000 Staging Diva Graduates worldwide to start staging businesses. Buying decorating and selling six of her own homes in four years lead to an interest in real estate staging which she turned into a career with the launch of sixelements.com in 2002. Since then she has staged hundreds of homes in addition to teaching home staging training. Gould is the author of several home staging resources including a series of popular ebooks made up of a Design Guide, Color Guide and Portfolio Guide. For more information about Debra Gould visit stagingdiva.com. - Visit Staging Diva's Website |
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 Nick Strong (Visit Nick's Website) Nick Strong launched www.se lectyourfranchise.com in October 2002. The site is now an industry leader and advertises over 450 franchise brands in the UK, USA and Canada. Nick has over ten years of experience in domestic and overseas franchise development. Nick is the Managing Director of Select Your Franchise UK Ltd, The Franchise Supplier Showcase and FranWeb Ltd. Company websites are www.S electYourFranchise.com, www.F ranchiseSuppliers.co.uk and www.FranWeb.co. uk. Nick also specialises in franchisee recruitment and business development training. To find out more about the services Nick and his team can offer you please go to www.selectyourfranchise.com/ contact.html
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