Frequently Asked Questions
Question: Do I need previous experience in business to buy a franchise?
Answered by Pam Bader (pictured right top) OBE, CEO of MOLLY MAID:
No you don’t. For example, MOLLY MAID Franchise Owners come from all walks of life – some run their businesses unaided while others share the management role with husbands or wives.
We’ve found that a sales background can be an advantage, but the strength of the MOLLY MAID brand avoids the need for hard sell. We believe that previous business experience is less important than a capacity for hard work and determination to succeed.
Question: What are the advantages of investing in a franchise over starting a business for yourself?
Answered by Sandra Venables (pictured right second from top), Managing Director of Well Polished:
One of the key advantages to buying a franchise is that you will be buying into a proven business model, the name and brand will be already established.
Statistics show that so many people fail in business when they try to go it alone. Another advantage of buying a franchise is that you will be able to start your business very quickly after completing your training. As well as comprehensive training, you will also receive ongoing support.
When going it alone in business you can sometimes feel very isolated. One of the other advantages of investing in a franchise is that as well as receiving support and training, you will also have the benefit of being able to network with other franchise owners in the group.
Question: How soon can I expect to make money back from a franchise?
Answered by Nigel Toplis (pictured right middle), Managing Director of Recognition Express:
How long is a piece of string? There is no set or defined timescale for getting a return on investment (ROI) in a franchise.
Different franchises will have different payback times.
Even within a franchise, it is difficult to be accurate about repayment timescales – much depends on the activity levels, competence, ambition and drive of the franchise owner.
That said ROI is an important factor (often the most important) when considering a franchise and my advice to prospective franchise owners is as follows:
- Firstly, do your own financial modelling with your own assumptions based on the size of your marketplace, your view of ‘customer purchase’ etc.
- Ask the franchisor for their ‘ballpark’ turnover/profit predictions.
- Speak to a selection of franchise owners (say, two operating for up to two years and two who have been running between open four to five years) and ask them their turnover/profit figures.
Somewhere between the three, you will have a fairly accurate answer and then finally speak to a good accountant and ask them to ‘take a view’.
Question: How safe is my investment with a franchise?
Answered by Brett Murray (pictured right second from bottom), Sales Manager of Chemex:
While there are no guarantees in life, it is a fact that a franchise is considered a far safer proposition than a brand new start up. As an indicator, all the major banks will view a franchise in a much kinder light, especially an A rated business opportunity such as Chemex.
Question: How will buying a franchise affect my work/life balance?
Answered by Geoff Whittle (pictured right bottom), Managing Director of Prokill:
Success is a direct reflection of attitude and application – the degree to which you achieve success revolves solely around your input of both. The success of any business is a choice between what balance you make between income and leisure.