At Franchise UK, we help individuals around the world start franchises through our online franchise directory. As franchise experts, we are always asked questions about franchising, usually by individuals debating starting a franchise. To ensure we share our wealth of knowledge, we have compiled our expertise and created this blog post containing answers to some of the most commonly asked franchising questions.
Do I need a solicitor when signing up for a franchise?
There is no singular response to this question as solicitor requirements can differ according to the franchise. Some may advise you to get a solicitor to look over their contract before you sign, and we agree. However, in most cases, this is usually a personal preference. This is because it’ll make you aware of absolutely everything that you’re putting your pen to, and can prevent any nasty surprises from cropping up in the future. By protecting yourself before you sign, there may be areas of the contract that you can highlight and discuss with the franchiser. However, it should be noted that most contracts are non-negotiable.
How much will it cost me to get involved with a franchise?
One of the key deciding factors on whether or not you want to get involved with a franchise is how much it will cost. There is no one definitive answer that can be given here, as the set-up fees for computer franchises for sale will inevitably be more than the set-up fees for cleaning franchises. You may be wondering what set-up fees have to do with it, but this is what the initial fees cover. Most of the time, the initial cost of signing up to a franchise includes the right to use that brand’s name and marketing, training program, business system and operations and a set-up fee to get you started.
When do I pay franchise fees?
The set-up fee isn’t always the only franchise fee you have to pay. More often than not you have to pay a yearly fee to continue using a franchiser’s name, etc.
When will I become profitable?
As you’re investing some of your own money into a franchise, it’s a fair question to ask when you’ll become profitable. However, this isn’t something that can be definitively decided, only estimated. Even so, this depends on your type of franchise, the type of market for it, how visible you become, etc. However, unlike businesses for sale in the UK that has been started from scratch, a franchise can be repeated by anyone, anywhere, any number of times. This means that you’re able to get a rough idea of how long it’ll be before you become profitable. When you meet with your franchiser before signing a contract, you should ask about the success story of other like-minded franchises so that you have a clear reference point.
Will I be able to choose the location of my franchise?
In most cases, you’ll be able to choose the location of your franchise (if it requires premises). However, depending on the agreement that you signed with your franchise, they might be able to step in. For example, you may decide that you want to place your franchise somewhere that is near another well-established franchise. The original franchiser might step in and either ask you to seek an alternative location, or they may come in and provide one for you. It should be noted that most franchisers will expect you to be the one to find your own location.
Can a franchiser terminate a contact?
The answer to this question is definitive, and it’s a yes. Most of the time when a franchiser steps in and terminates a contract, it’s when the franchisee has breached their part of the agreement. Depending on the breach and the franchiser, you may be given a set time in which you can rectify the mistake whilst still keeping the franchise (this is commonly 30 days). If this is ignored or incomplete, then a franchiser has the right to decide that they want to terminate the contract. However, in other cases, a franchiser may decide to terminate a contract if your franchise in particular is failing. There are a variety of reasons which should be stated clearly inside the contract.
Can I have more than one franchise?
If your franchise is doing extremely well, and you’re confident in your abilities to be able to take on another one, then it’s absolutely possible to have more than one franchise! This can be the same franchise but in a different location (in this case you’d become your own master franchise) or something completely new, such as pet franchises in the UK.