- Have you an interest in or a passion for whatever the business does?
- Research the market for the product or service being offered – is it growing or shrinking?
- Is the geographic area you are being offered a good demographic fit with the product or service?
- What does the product or service actually give to the end user i.e. what problem does it solve?
- What is the franchisor going to give you that you couldn’t create yourself?
- How many franchisees have been recruited and how many have left/failed and what were the reasons?
- How does the initial purchase price and ongoing fees compare with the competition?
- Every franchise will pay monthly management fees and sometimes other fees such as marketing costs, understand exactly what you will need to pay and what you get in return for these fees.
- What is the background to the franchisor – how long have they been successfully trading, have they had any previous business failures?
- Lastly the ‘smell teste’ from your meeting with the various representatives of the company do you feel a synergy, are their values in line with your own – is their evidence that the values run through the whole business?
Why Choose a Franchise?
- First and foremost, you are buying a proven business model which should have a much greater chance of success than a start up situation.
- You will receive comprehensive training and ongoing development
- There will be support from not just the franchisor but your peer franchisees as well – people who have been on the journey you will embark on
- Typically you will become part of a national or well-known brand which carries far more weight than if you started up on your own
- The franchisor as a large company can agree much more preferential terms with suppliers
- The franchisor again as a large company can make lucrative partnerships with other businesses/organisations to benefit the franchisees
- You are building a business that one day you will be able to sell
- As a franchisee you have the autonomy of running your own business but with the support and peace of mind that the franchisor is there to support you when needed
- The franchisor wants you to be successful and will give you a lot of support, remember a franchisee that does not work costs them money and a great deal of time – it’s in everyone’s interest that you are a success.
- As someone who started a business from scratch, I can tell you it takes a lot of time, every process, every system, every word template (!) has to be created. Investing in a franchise means all that is given to you and straight after your training you can be out doing business.
MD & Founder
UK Business Mentoring Group