Bought anything lately……….?
If you’ve bought yourself a morning coffee, a lunch time sandwich or filled your car with fuel at anytime it’s likely you have come into contact with a franchised business. Franchising is big business with a strong foothold in the UK where consumers can access products and service from any outlet with the same brand expecting the quality to be more or less the same if not better. From a consumers standpoint, shopping with a franchised business safeguards continuity, quality and expectations.
This is important to remember if you are considering starting a business and thinking about buying into a franchise as an option. Franchising is a legitimate way of starting a business and minimising the problems and pitfalls that are inevitable in any industry. Starting any business from scratch is set with its own risks, ask any bank manager.
There are statistics extolling the virtues of buying into a franchise as opposed to starting a business from scratch. The most common purported is that 95% of start-up businesses fail within the first 3 years, whereas 95% of franchises succeed. If you consider buying into a proven concept that already has a track record and can rely on start up support from the franchisor and other successful franchisees it would indicate an element of added security.
Replicate the Success
The fundamental principle of a franchise business is that it is based on a successful business model that can be replicated without any special skills or location requirements, other than being trained to operate the franchise successfully and having the right property that’s equipped sufficiently to operate from. In other words you don’t need to be a rocket scientist based in an office with a stream running through it (if that exists?). However, it does depend on the type of franchise you opt for. You will be expected to have the capability to be adequately trained to operate the franchise successfully from a property suitably equipped for the business. This will all be explained in detail before your start and in the Franchise Agreement.
There are some franchises that do not need an office or restaurant facilities to operate from initially. Van operated franchises, handyman, home care, cleaning franchises etc., can be successfully operated from a car or van, although an office may be needed as the business expands. There are lots of different types of franchises to choose from.
However, the most important thing to remember when considering a franchise is that it is a legal contract for the tenure of the period it covers.
Buying the Franchise
If you are thinking about buying into a franchise as an option towards operating your own business and you want some impartial information, feel free to download our information sheet, “Buying into a Franchise”. This will give you answers to most of the questions you should be asking and more so advise you other ways of helping you complete your due diligence.
Growing the Business
If you have a business and are thinking of expanding it through Franchising and you want some impartial information, feel free to download our free information sheet, “Growing a Franchising”. This will give you an overlay of what you will be expected to provide and some detailed information on the requirements and demands that will be made of you as a Master Franchisor.