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There are so many franchise opportunities out there and it can be hard to select the ones that suit your interests, needs and budget. Lime Licensing Group are an award-winning company who are highly experienced in creating successful franchising systems. This month's guest article is written by Richard Pakey, Regional Director of Lime Licensing Group. Richard has seen many franchisees succeed over the years and is here to share his top tips on securing the ideal franchise for you. Have a read of Richard's excellent article below!
According to the industry experts, there are no less than 1000 different franchise options covering virtually every sector and price point, so it’s no wonder why you might be a little confused at which options to look out for if you are considering buying a franchise for the very first time.
Do you choose one of the well-known operators (who have the biggest marketing budgets) largely due to their success (which in turn means they have large franchise fees!) or one of the younger outfits that are even more hungry for growth and offering incentives for the early adopters?
With so many available options, it’s very important you don’t try and scratch the surface on virtually anything you think is available – it is far better to look at an isolated few and dig deep into them to see if there is a suitable ‘fit’.
This is how you do it – follow my three top tips!
For starters, the best long term relationships are ones where there is a common interest. It is possible to buy and run a franchise that you have zero knowledge and experience of (a franchise is a system that you will be trained on) but the best run franchises are run by franchisees with a real passion for the type of business that they are running.
Top Tip No. 1
Look at a franchise that you truly have a general interest in.
This might well be withinfood, motor-related, or maybe even property! Start by writing down 5 potential sectors that interest you. Great – you’ve already limited your potential options from over a thousand to maybe a few hundred, and this is good by the way!
Then, there is the risk versus reward investment level to look at. Where is your comfort level in regard to the funds that you want to invest in the franchise? Is it £10,000, £50,000 or more?
Top Tip No. 2
Limit your franchise search to ones within your ideal investment level.
There is one caveat here, that some established franchises will have a relationship with one of the franchise-friendly banks and could offer an option of a funding facility allowing up to 70% of the total investment required, so there might be some further capacity for you here of course!
Now you have a shortlist of potential franchises, at least ones that you would consider yourself working within, at an investment level you are comfortable at, it’s time to get the facts and figures, warts and all, to help you come to an informed decision.
Top Tip No. 3
Do your research, follow the recruitment system, ask questions and evaluate.
You will typically end up with dozens of pieces of information on why you should purchase this particular franchise, and it’s a hard slog to get through it all and pitch against each other to know which one is the right one to go for. However, this is a very important stage for the franchisor too, because they will have their own pre-qualification process and they will be constantly watching you to see if you can follow that process adequately. Failing to follow this very simple process will already put you on the back-foot because someone who can follow the system at this stage could well be a suitable franchisee! Of course, if it turns out that none of these tick all your boxes, simply start the process again.
Don’t panic if this all sounds like too much, we here to help with our free matching service!
Richard Pakey is a Regional Director for Lime Licensing Group, an award-winning company with a 27 year history of creating franchising systems and franchisee recruitment with 2000 placements made to date. Could you be their 2001st franchisee?
Learn more about the services that Lime Licensing Group provide here.