Franchising is a fantastic way to start your own business. Buying into a proven business model with the support of experts, means you have a higher chance of success compared to going it alone, IF, you are prepared to follow guidance and put in the hard work.
Before investing in a franchise, you should research the entire market thoroughly, there will be many different options, it’s about finding the right model for your vision.
It is essential to get to know the model in detail, to help, we have pulled together a list of questions you should be asking. Be wary of any franchisor not prepared to answer all of your questions.
Equally franchisors should be taking the time to get to know you, and make sure you have the attributes to be successful.
However enthusiastic you are, don’t rush.
Also be wary of franchisors putting pressure on you to sign up, particularly the “If you don’t sign now you won’t get another opportunity” approach.
Investing in a business and forging a successful partnership, shouldn’t be rushed. This is your journey, and should go at your pace.
One of the most important stages of your franchise journey is making sure you’ve found the perfect partner. Don’t be sold to. Don’t get caught on a wave, at some point that wave will come crashing down around you. Do spend more time researching now. Do give your business the best chance of success.
If you we’re buying a house, you wouldn’t buy the first one you looked at would you? You wouldn’t buy without knowing it’s built on solid foundations, would you? An extra two weeks of research, speaking with every franchisor could mean the difference between a dissolved and a thriving company.
Here are some questions that you should ask to your potential franchisor.
What is the background of the franchise and its leaders?
How many franchisees do you have?
What are the long-term plans for the franchise business?
Can I speak with a franchisee about their experience being partnered with you?
What sets you apart from your competitors?
What accreditations do you have?
What does it take to become accredited by them?
Are you a member of the British Franchise Association? If not why?
How has COVID affected your business?
What are your criteria for choosing a franchisee?
What makes a successful franchisee?What training will I receive?
How will the training be delivered?
Is your training accredited? If not why?
What support do you offer beyond the initial training?
Will I get a chance to meet with the support team before signing the franchise agreement?
How will I get new customers?
What are the monthly fees?
What does the average franchisee make per month?
How much liquid capital will I need to maintain to cover the franchise until it breaks even?
How do commission payments work?
What will my territory be and how will it be protected?
How long is the franchise agreement for?
Can you sell the franchise at the end of the term?
If so, what exactly can you sell? I.e. brand, image rights, customers
I joined Holidaysplease in 2018 to grow a new side to the business called the Family Holidays Franchise. Much of the business still had to be developed, what was the model? How would we market ourselves? How will we stand out from competitors
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