Why Should You Consider A Franchise
There are many individuals who want to be their own boss. They see no long range security in working for someone else, and feel that their potential income will always be limited as an employee.
Franchising offers an opportunity to break free & own your own business whilst at the same time minimising the risk that is inherent in opening an entirely new business from scratch.
Franchising allows you to follow a tried and tested business system which will greatly improve your chances of success, as the statistics prove.
Franchising enables you to become involved as part of a company that has established a tried and tested system and has achieved some market share and name awareness. When starting a business as a self employed person you will make mistakes which can be costly if not catastropic.
An established franchise will have ironed out those problems. They will have a written system contained within the franchise manuals as to how operate the business so as to achieve maximum sales and profitability from day one. It is effectively the name awareness and the system that you are paying for.
One of the most important aspects of becoming a franchisee is that help is on hand at every stage. The Franchisor will provide initial training, launch and marketing support and day to day help. The fact that as a franchisee you are in business for yourself but not by yourself is a major factor in the improved success rate that is associated with franchising.
If you decide to buy a franchise, do not relax and wait for the Franchisor to do all the work, that simply won't happen. Franchising can provide a structure and a proven system but it is still your hard work and effort that will be decisive in making it work.
It is important to remember that having purchased a franchise you need to be prepared to follow the system as set out in the manual. It represents the result of the franchisors experience and best practice.
posted by Hayling Yacht Company @ 11:51 pm
6 comments
6 Comments:
My Wife is concerned that I would be taking a risk buying a franchise how can you reduce the risks?
Hi David, there is always a risk when you purchase a franchise. Fortunately there are a number of steps that you can take that will help reduce those risks.
1. Firstly make sure that you will have the support of your family as it can be hard work and long hours building a new business.
2. Check the Franchisor thoroughly, talk to as many existing franchisees as possible. They will normally be helpful as they have been through the buying process themselves. Ask them about "the system", ask them about the training and support, ask them how they are doing against the projections.
3. Check whether the franchise will work in your area. Is there a need for the product or service. Is there competition, how good is it. Competition can be good as it shows there is a demand.
4. Ensure that you can work with the franchisor as you will need the support of his franchise team.
5. Take professional advice. I know it costs money but it could save considerable problems later.
6. Make sure that you understand the franchisee role within the business.
Purchasing a franchise provides a framework, name awareness and support and back-up. It will however be your own efforts that make it work for you.
You cannot
Are there any franchises that can be started part time as this would make the transition easier.
Also might be worth talking to the Banks as some of them have good Franchise departments nut don't worry if you get turned down I was turned down twice before I was accepted.
I just wanted to thank the Franchise Business team. I recently purchased a franchise that was advertised on your site. The site also gave me clear uncomplicated advice and the franchise finder service was excellent. When I needed clarification the help was there and also free. Thanks, I will let you know how I get on but its all looking good at the moment.
Be very careful when choosing your franchise. The large and expanding franchise company my husband joined belongs to the BFA but does not adhere to their ethical standards. Do not sign a contract that states A minimum royalty fee. If you do and your business fails, the Franchisor could try to claim lost royalty fees. My husband has lost a large sum of money due to this business and to add insult to injury the franchisor is seeking compensation for lost royalties. Our finances are in tatters as a result and the stress this has caused us both is unbelievable. Also they have not supplied the support that according to the contract they should and refuse to stae why this was the case. The franchise company my husband joined has had a failure rate on our course of 50%. A fact they will do thier utmost to conceal. A poorly planned model that they adhere to. So long as the shares are good the franchisor does not care.
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