How do I choose the right franchise?
The experts at Franchise UK are often asked this question. The choice is of course yours, but with so many tempting franchise opportunities available, how do you go about choosing the right franchise?
Franchises are ideal businesses for people that can follow a system. The best franchisees adhere to the system of which the franchisor will have perfected to ensure any bumps in the road, have already been ironed out. This is why investing in a franchise is less risky than a start up.
Research is key, your attention to detail is required to help focus and guide you into the right franchise. Choose a franchise in an industry that you have a genuine passion for, you may not have experience in that industry sector, however this is not required for the majority of franchises as full training is provided.
Once you have made contact with the franchisor, often through a third party such as Franchise UK, you will be supplied a copy of the franchise prospectus, this is an important document and forms part of the legal contract should you wish to proceed, take time to read the information carefully.
As part of your due diligence you may be wise to research the franchise, perhaps their filed accounts may be a good place to start, these may offer you assurance that the company is financially stable.
Speak to an existing franchisee or preferably a few, just to get their opinion on what to expect, ask how the opportunity is performing for them, are they pleased with their choice and the reasons why. Franchisees are great to ask what they thought of the initial training programme and the level of ongoing support provided by the franchisor.
Another important matter when considering your future as a franchisee, is to find out how long the franchise agreement will last and what the renewal fee may be.
Hire the professional services of a specialist franchise solicitor to check the agreement, offer advice and ensure you fully understand your obligations under the franchise agreement.
Investing in the right franchise can bring financial security for many years to come. As with any business you will need to work hard, follow the method, and complete the necessary training to maximise your investment.
Chose a franchisor that you feel will support you both pre and post launch. A supportive Franchisor should be a given, as it is in the franchisors interests for your business to succeed. After all, if you are making money so are they.