A franchise is a ready-made business. It is yours, but it is selling a product, or providing a service that belongs to a larger company. McDonalds, Subway and Starbucks are all franchise companies. Although it is your business, the company might also want you to follow their rules and their business model, rather than your own.
What are the advantages of a Franchise as a business
Unlike being self employed and setting up a business on your own, a self employed franchise is set up for you and ready to trade. The brand is already known, so you will instantly have a customer base and the franchise company will usually promise not to open another franchise, within a certain distance from your business.
How do I run a Franchise
You run a franchise in exactly the same way as you would run your own business. It’s your talent and vision that will make the franchise a success or a failure. You are in charge and you make the decisions.
Can I get a loan to buy a Franchise
The banks are certainly more responsive to lending money on a franchise, than a small unknown business. You won’t get the full amount, but they should be able to help you if the business has a successful reputation. Like any business, it is better to have as little debt as possible.
Does the Franchise company offer any support
Yes, normally they offer support and advice and where necessary, they will give you the appropriate training and marketing tools. This means that you have a great deal of help at the start of your business career.
Are there any disadvantages
Like all business, whether it’s a franchise or you are self employed; you have to put the hours in and make the decisions. The responsibility for the business is on your shoulders. If you don’t run the business properly the company can pull out of the franchise agreement, which could leave you with a big financial loss. You also have to pass the interview procedure with the franchise company before you can invest in a business.
If you decide that the business is not for you and you want to sell. The company policy on interviewing potential investors; might make it difficult to make a quick sale. You can’t just sell the business to anyone.
Franchises might be more expensive to run, you may have to buy from the company suppliers and or, pay management fees.
Where do I look to find a Franchise
The British Franchise Association has a very informative web site. They answer questions, explain all about franchising and even sell books about franchising.
There are also plenty of websites which provide information about franchises for sale and companies that have franchises.
Franchise Exhibitions are a great way to obtain information. You will get the chance to talk to representatives from franchise companies and people who have bought franchises. The British Franchise Association, hold exhibitions at certain times of the year, throughout Great Britain.
Trade papers will also have details of franchise opportunities. Ask at your local library for any publications they might have.
Owning a franchise can be very rewarding and profitable. If you would like any help about self employment and franchising in particular. Contact one of our experts, who can guide you in the right direction.
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