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Franchise FAQ

Q. What are the characteristics of a franchise?

Franchise Development Services (FDS) article image
 
Franchise Development Services (FDS) article image
 
Franchise Development Services (FDS) article image
 
Franchise Development Services (FDS) article image
 
Answered by Dean Spiers, Managing Director of Prokill

Dean says: In short, a good franchise should provide you with a framework that you couldn't build yourself within the same timescale, in order to generate a substantial income in the shortest possible time - coupled, of course, with the freedom and independence to take responsibility for your own future. This should take the form of the franchisor having established a credible brand name; a comprehensive and efficient operating system; a professional reputation; professional accreditations and recognitions that open doors; it should provide you with the benefits of group activity and buying power, and above all make you 'part of the family'.

A franchisor should engender a feeling of 'belonging' which can be so elusive when embarking on a business of your own. In addition, a really good franchise should give you the ability to weather the vagaries of the economy and dips in disposable income - such as Prokill that operates within a bomb proof marketplace.

Q. How will the franchisor help me to establish the brand in my territory?

Answered by Lloyd Evans, Chief Executive of ChipsAway International

Lloyd says: The advantage of buying a franchise is being able to tap into a well established brand, so you should expect that a franchisor with a network of any reasonable size would be undertaking national advertising of some sort - Yellow Pages listings, internet advertising and a presence in relevant sector magazines, for instance - which promotes the brand and benefits all franchisees in the network.

On your individual territory, a good franchisor should not only arrange, co-ordinate and support a well planned launch for your new business - which may include advertising, leafleting, promotional events - but should also ensure that you have the necessary skills and tools going forward to market your business and maintain a high profile presence for the brand. This means your franchise package should essentially include marketing training, as well as providing you with a range of professionally produced templates that reflect and build on the national brand identity, from business cards, stationery and signage to advertisements, posters, leaflets and promotional items.

Q. How does a guaranteed Turnover work?

Answered by Carol Stewart Gill, Founder of Dublcheck

Carol says: A guaranteed turnover plan is when the franchisor guarantees a specific level of turnover to the franchisee within a specified period of time. In some cases the amount of turnover is variable and dependent on the initial level of investment made by the franchisee. However, investing in a guaranteed turnover package is by no means a guarantee of profit.

The Dublcheck Guaranteed Turnover concept is why we are different to most franchise opportunities. It works because normally when you buy a franchise, you buy into the brand, the training, the rights to go ahead, etc., but then it is up to a franchisee to get their business. We secure the contracts for the franchisees, which leaves them free to concentrate on the relationship aspect and to develop and grow their business.

Q. Am I able to put my own 'stamp' on the franchise by introducing different products or initiatives?

Answered by Ken Dennis, Franchise Sales Director of ServiceMaster

Ken says: When you buy a franchise you buy a tried and tested system, this could be a cleaning franchise such as ServiceMaster or Merry Maids or a furniture repair franchise such as Furniture Medic. Either way this system has been replicated because it was successful as a pilot operation and has been adopted by a myriad of franchisees that have invested their money into the brand.

I would discourage a franchise owner from putting their own stamp on their franchise because if a franchise owner adapts their franchise it would not be like the original successful system and there would not be any consistency within the brand. As a result the franchisor would not be able to guarantee the same level of success. For example if a franchise owner used the wrong marketing, targeted the wrong customers, used the wrong pricing or hired incorrect staff it could have dire consequences.

However a franchise is a three-legged stool. The franchisor, the business model and the individual franchisee all need to work together and if a market changes and a franchisor is looking for new ways to grow, who is to say its franchisees may not have any new initiatives or products that could be adopted by the franchisee network and help the franchise grow.

Q. What do the different bfa membership levels (full, associate & provisional) mean and is it an indication of the quality of the franchise package?

Answered by Paul Fennell, Franchise Director of Safeclean

Paul says: As a new franchisee in 1995, British Franchise Association (bfa) membership was as important to me then as it is now as Safeclean's Franchise Operations Manager. One word sums up full membership: 'proven'. Full members have demonstrated and proven, over time, their formats in the four key areas of viability, training, ethical practice and open disclosure. This culminates in a proven trading and franchising record.

With checks in place and a vow to meet bfa principles, plus commitment to the key areas above, franchisors can be admitted as Associate members. However, they have yet to meet the criteria required of Full membership. Provisional members are usually new, typically trading less than one year. They have made a commitment to go through the full bfa accreditation process. However, they have not met the criteria to achieve Full or Associate status. Most Provisional members do go on to achieve Full member status.

There are no guarantees of success in franchising but bfa membership does identify franchises that are already proven (Full), committed to becoming proven (Associate) or starting out with the aim to become proven (Provisional). This helps prospective franchisees to make informed choices.

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