Franchise Article

 ·        Take a critical look at your strengths and weakness - are you sure you have the capacity, temperament and skills to run your own business?;

·        Make sure you have the full support of your family - do not under-estimate the additional responsibilities and demands on your time which will inevitably cause some strain;

·        Ensure you have sufficient capital - you will need at least a third of the start-up costs and half for a less established franchise;

·        Obtain a full list of existing franchisees - don’t just speak to those suggested by the franchisor, they may be the only ones that are successful - visit where possible, but at the very least ask them how their business is performing and what support and service is being provided by the franchisor;

·        Examine how well known the franchise and its service/product are.  A good reputation is a head start in business;

·        Look at the market as a whole - find out who your competitors are and how strong their position is;

·        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?;

·        Is the training provided by the franchisor sufficient to enable you to run the business successfully.

·        Seek professional advice from an accountant about income and profit 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;