If you are looking to be the proud owner of a franchise, there are many considerations for you to factor in, however; have you factored in on how you are to conduct yourself? Have a read for some further guidance that might just help you.
Hints And Tips On Buying A Franchise
You might be thinking that just about anyone can rock up and ‘buy’ a franchise, and this might well be true if you are well in funds. It is important though to understand that you should really be ‘awarded’ a franchise by the Franchisor, and to so do, it will have to be part of a process as this is what franchisingis all about!
You Must Follow The Franchising Process
One of the reasons you might be looking for a franchise is to be more in control of your own future and also be rewarded for your efforts. You will already know that this will not be a paid job (if you did not realise this, you will soon discover that in franchising!). You will get out what you put in - I bet you have heard that phrase before! It is fair to say that sometimes individuals are not necessarily completely motivated by money, perhaps more of a lifestyle change, so there are exceptions to this statement!
Why Are You Looking At A Franchise?
How much do you really know about the franchise you are looking at?
Dig much deeper into the actual operations of the business, would the business suit your own lifestyle for example? Are you dealing with other people as part of your role? Is that even what you are good at, or enjoy doing?
Only a more detailed look at the inner workings of the franchise can get you a true understanding of what is involved.
Can you truly do this remotely and take a view?
How about current franchisees? These people have a much better understanding of what is involved, given they are already operational within the franchise. You might not get a better endorsement, or otherwise, of how the franchise is to run!
Do Not Overlook The Financials
You might have been drawn into a particular franchise by a figure often referred to as the ‘Franchise Fee’. This is quite often the initial fee to get you going and be supported during your time operating the brand. More frequently, there are other liquid requirements to run the business; this could be in the form of investment required for equipment, stock, staffing and salaries and of course, working capital.
Have you then thought about the total financial commitment? If so, does this then fit your own budget? If it does not, but you are still keen to explore the possibility, where might you be able to generate the additional funds from? There might be options, but you should also think about this yourself at this stage.
Typically, work from home franchises require very little inventory, and very small amounts of additional capital is required, so you might well find that you could be well funded if you were looking to invest in the region of £25,000. Now when you compare this to say a brick and mortar food outlet, this might show a low franchise fee of £10,000, but then you will need deposits for things such as: commercial leases, additional funds to pay your solicitor, part payment if you are looking to lease equipment and so on. The list can get quite extensive, and this means you might need to be liquid to as much as six figures or more!
This is not designed to put you off as these types of businesses can be highly repeatable and scalable if you understand the short, medium and long-term implications on your cash.
How You Can Help Yourself!
You have lots of offers for support in the franchise space; there are free to attend franchise exhibitions. Then as you request further information on the franchises that either you like the look of, or ones that initial match your investment, further information will follow from the Franchisor themselves, or more often someone representing the franchise. Again, the role of these people is to help guide you through the entire process, understand what is so good about the franchise you are enquiring about, learn more about what your role would be, what support is there initial and ongoing. They will literally walk you through most stages, as long as you engage to do so, and that is the critical point as you need to make yourself known to get the support you need!
Get Face-To-Face Meetings
An important part of choosing the right franchise for you should be whether you believe the Franchise owner is the right fit for you. It will be the same the other way round too! Building a relationship early on might be critical to you being ‘awarded’ the franchise as I mentioned earlier.
Now, can even some of these areas be carried out online, remotely or without human interaction? I’ll let you decide.
You might even be able to have an opinion on this very portal that you are reading this short article on. Proof yet again that support is all around you, if you just look out for it!
Richard Pakey is a franchising expert and Managing Director for the award-winning Lime Licensing Group and can be contacted in the following ways:
Email: richard@limelicensinggroup.co.uk
Mobile/text/whatsapp: 07904 697591