Five Hot Tips For Franchise Success
If you ever dreamed of being your own boss or owning your own business then you must look at franchising. Franchising allows you to do all the above while still maintaining a connection with the franchisor’s head office, which will supply you with training and support and some form of presence that a solo start up could not achieve. Jamie Brown gives his five hot tips for success with a franchise
1) The successes of franchising
There are estimated 40,000-franchised business units in operation in the UK. The latest bfa survey found that nine in 10 franchised businesses are breaking-even or doing better. This success rate ties in with the finding that nine of 10 franchise owners say they would recommend franchising. However good these findings are it’s vital to remember that ultimately it is down to your efforts as a franchise owner, there are no guarantees for success.
2) Understand the size and scale of the franchise industry
The recent survey conducted by the bfa showed that the franchise industry accounted for £14.7 billion of the country’s GDP. The franchise industry continued to grow even through the recession. This sort of contribution to the economy is becoming increasingly important.
3) Don’t just search by sector, branch out
It doesn’t matter what you’re perceived skills or experience are, you will soon come to see that “No prior experience needed” is one of the main phrases that franchisors look for in an ideal franchise owner. Although your previous experience will help you in your chosen sector, it is not vital. All business format franchises provide training. This means that you can concentrate on picking a business that will provide you with a lifestyle and of course a return on your investment.
4) Make sure your investment is legally protected
As a franchise owner you will be required to sign a franchise agreement with the franchisor. The agreement’s main function is to clearly set out the extent of rights you will be granted and the territory in which those rights apply. Before signing your name on any dotted line it is advisable that you contact a franchise lawyers. There are number of specialist franchise lawyers operating in the UK. It’s vital that you see a franchise lawyer, as they are familiar with the workings of franchising and will be able to judge a franchise contract that not only protects your business but also keeps in mind commercial considerations.
5) Use the training that’s provided
Training is provided by all franchisors however the offering differs from franchise to franchise. Training opens up the availability of a franchise opportunity to a much greater number of potential franchise owners. For the franchise owner, the initial and ongoing training allows you an opportunity to become more familiar with the role as well as expand your knowledge of your occupation and develop in areas you may have never operated in before.