Advantages of Franchise Ownership
You could start a business of your own without involving anyone other than your advisers – an accountant, a solicitor and banker. But, there are many people who want to be their own boss but within the comfort zone of a tried and tested business. They don’t want to make a painful journey around the learning curve reinventing the wheel.
In franchising, someone has already done the work establishing the business, and has ironed out the wrinkles. A franchisor is now prepared to share that expertise with franchisees for a financial consideration. Basically, a franchise is a conveyor belt to faster business ownership.
And though like anything else in life, there are pros and cons involved, the benefits of franchising outweigh the disadvantages. Obviously no business alliance should be entered into without diligent evaluation, but subject to satisfaction at the end of that process, franchising has advantages that suit ambitious individuals.
Consider these benefits:
- The business has already been proven to work. The franchisor and the network of busily trading franchisees are testimony to that.
- You are fully trained in all aspects of the business, and sometimes your business partner and/or key staff receive training too.
- There is an operating system that can be learned and then implemented to the letter, or with a degree of flexibility.
- The brand is established. People recognise it. It’s embedded.
- The franchisor helps with finding a good location that will deliver traffic if that’s what is needed (e.g. for retail or food outlets) or will be cost efficient if visibility is not paramount (e.g. for cleaning or home improvement businesses).
- Marketing tools and ad campaigns are provided, both nationally for the brand and locally for individual franchisees. The majority of franchisors also help franchisees make a major local impact with a publicised launch of the business.
- Franchisees receive ongoing support from good franchisors, delivered via phone, a company intranet, newsletters, regular visits by a representative from the corporate office, regional meetings and annual conventions.
- Centralised purchasing is a feature of many franchises where the franchisee benefits from discounted pricing on goods for a retail store or ingredients for a restaurant and other supplies.
There are many different types of franchise opportunities available, with various investment commitment levels that can range from minimal to more substantial. For those not ready to leave their “day jobs,” there are plenty of offerings that require only a part-time commitment that grows gradually. Ambitious entrepreneurs, who want to totally commit themselves to owning a business, have a vast range of choices.
View the following franchisee success story and be inspired to find your perfect franchise opportunity!
Franchise Success Story
Coffee Republic Highlights the Advantages of Franchising
A year ago Andrew Bowen and his wife Claire gave up their jobs to open two Coffee Republic Delis in Oxford and Maidenhead, and have since become Regional Development Franchisees for Oxfordshire.
What I did before taking up a franchise
Before franchising, I worked at Tesco for 24 years developing stores and operator models. I began as a store manager, then progressed to area manager opening ‘Express’ stores, which led to working in Central Europe. I had reached a certain level in my career but didn’t want to re-locate to Europe so my wife and I began considering the direction we wanted for our lives in the future.
Why I chose franchising
We chose franchising because we understand the power of the brand and the complexities of running your own business so the combinations of these factors lead us towards franchising. Working with a franchised company also means you avoid a lot of complicated set up issues and legal matters which a bigger company will already have in place. The support network that an established head office provides is also 
attractive, such as existing product development and marketing, etc.
Why I chose Coffee Republic
Coffee Republic appealed to us because it was a relatively small company with the right kind of ethos that matched what we were looking for and they seemed like the kind of people we’d like to work with. We realised that the demographic of coffee bar guests was similar to us and if you’re considering a lifestyle change, this is an important point to consider.
The training and support I receive from my franchisor
The training and support we received from Coffee Republic was fantastic. In fact, I was amazed that for such a small company they had great processes in place for training their new franchisees and ongoing support. Since opening our first Deli, I fully appreciate why such extensive training is necessary as managing your own Deli can be a very ‘hands-on’ and the training we’d had meant we were fully equipped for opening.
The challenges I have faced
The biggest challenges we faced were the things which no one prepared us for, i.e. choosing an accountant, running a limited company, tax and Vat returns, payroll issues and P38s. Coming from a corporate background, these matters are already covered for you, you can just refer it to the relevant department, but working for yourself you have to research all the hidden costs and find the best rates yourself. How you decide even which is the right bank for you is a major decision and if you make the wrong decision it can prove quite costly.
My advice to someone thinking of buying their first franchise
My advice to anyone considering franchising is firstly to talk to lots of people within the industry and do as much homework as you can. Go and arrange some work experience in a coffee bar for a week, free of charge if need be. If you’re committing your future to the industry then you should experience first hand if it’s what you really want to do before you sign up. Do something that you enjoy, if you don’t like working with the public or at weekends, then owning a coffee bar is not for you. Have a contingency fund when budgeting of around 20% to cover all eventualities or unexpected problems. Employ someone good at administration, luckily for us my wife Claire has kept on top of all the admin and helped to get the business organised.
What I look for in a potential franchisee
In looking for potential franchisees, I look for someone with a passion for customer service, which is essential in this industry, someone who could really make a difference in their own bar. You need to not be afraid of hard work and get stuck in, and if you have a background in the fast food industry that makes a great head start for a Deli operator.
If you would like to know more information about a Coffee Republic deli coffee franchise, please click here, and this will redirect you to their profile...
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