10 Points to Consider Before Buying a Franchise

- Take a critical look at your strengths and weaknesses - do you have the room for growth, attitude and business expertise to run your own business? Marketing and selling skills are becoming more important when considering a franchise.
- Do you have the support of your family - the increased demands on your time may increase friction within the family unit.
- Choose some existing franchises and franchisees to talk to by looking at websites like www.SelectYourFranchise.com. Ask how the franchisee's businesses are performing and how the franchisor is assisting them in terms of service and support.
- If the franchise is new, check they have already tried and tested a pilot programme, how long did it run for, what did it achieve in terms of growth and return on investment? If there was no pilot run, how does the franchisor know the franchise and therefore will you be successful?
- 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 look at their strength in the marketplace.
- Review the costs carefully, pay close attention to the the initial franchise fee and any additional monthly management costs, 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? As a guide, the average franchise fee is £20,000, but bear in mind that a small percentage of high cost franchises do make this figure appear high. There are many low cost franchises with some advertising no initial franchise fee. Monthly management fees average 11.4%.
- Is the training provided by the franchisor sufficient to enable you to run the business successfully?
- Talk to an accountant about income and profit projections and talk to a solicitor about the franchise agreement. Ensure that both have some franchise knowledge and if they are affiliated to the British Franchise Association this will also help to ensure you get best advice.
- The UK's leading banks can provide essential help about the funding and running a franchise and its helpful if you can talk face-to-face to your nearest area franchise manager. You should also contact the British Franchise Association.

Nick_Strong

Enter Your Email Address For Update :

Delivered by FeedBurner

Related Post :