Starting a Franchise Business
Before you make a decision about franchising it’s vital to ask yourself some questions about the business you have your sights set upon. Here are some tips to help you.
Planning And Research
Although you have a proven business model with a franchise, this doesn’t mean that you can start your franchise business without any planning and research at all. Questions to ask:
- How long has the franchise been running
- How many franchisees are there nationally
- Is the brand well known and recognised
- What training is available
- Who will be supporting you
- What is the exact investment and what are the ongoing costs
- What happens if you want to end your franchise?
The Financial Aspects
To get the advantage of a proven business, you will have to invest financially, whether this is by your own funding or a business loan. Franchise costs vary considerably so ensure it is clear exactly how much you will be investing, not forgetting other costs such as whether you need to rent an office/building, stock, insurances, advertising costs and accountant fees etc. Your business loan may have to cover your first years salary as despite a proven business model there is no guarantee that it will be successful, especially during the challenge of the first year in business.
Passion For The Business
This business is going to be your baby for the foreseeable future! Are you going to be able to be there for it, to nurture it and see it grow? You will be working long hours, at least initially, so you need to love it no matter what sort of business it is.
Talking To Other Franchisees
There is no better way to help you to decide about your chosen franchise than getting the information straight from the horses mouth. By talking to other franchisees you can get a real feel for the business and it will help you to get some ideas about how you can run your franchise. Ask them if they are happy with the business, are they making money, is the company supportive and get some real life feedback about what has worked for them.
Restrictions and Rules
A franchise will already be ‘branded’ and will in effect be someone else’s baby; they would have spent the time and money building there brand and franchise model and may well have quite strict regulations about what they want for their brand. Make sure you are well aware of what restrictions there might be and be aware that all your marvellous creative ideas for your business might not be permitted.
The British Franchise Association (bfa) is the only voluntary self-regulatory body for the UK franchise industry, with a standards based approach to membership. Its aim is to promote ethical franchising practice in the UK and help the industry develop credibility, influence and favourable circumstance for growth.
The UK Franchise Directory is published by Franchise Development Services Ltd (FDS), an international franchise consultancy and publications group with its headquarters in the UK. FDS has been involved in Franchising since 1981 and has developed a complete range of franchise products and services for everyone from established franchisors and franchise owners to investors and companies not yet involved in franchising.
Offical online partner of the British Franchise Association
Startups.co.uk is your number-one online resource for starting a business. Whether you are a budding entrepreneur ready to start a business for the first time or you are an established entrepreneur looking to do it a second time, we have all the news and information you need to get your small business starting on the right foot.