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Franchising |
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Franchising can be an excellent method
of expansion but is not a get rich quick scheme.
The amount of work, time and money involved in setting
up and managing a franchise network should not be
under-estimated. You need to ensure that your business
is suitable to franchise and that it is right for you. A
good adviser can guide you on whether franchising is the
right route for you and on its likely
success.
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Information |
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Before franchising your business, you
should try to get as much information on franchising as
possible. Your advisers can guide you but you
should also test the market for yourself and make sure
that your pilot operation (which must be in place and
have tested the business in operation before you
franchise) has given you accurate information on the
likely financial return for the franchisees and for you
as the
franchisor.
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Advice |
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Please see our other sections for tips
on getting advice and guidance and how to choose and
work with the professional advisers who can help you
with franchising your business or managing your
franchised
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Franchising
- This website is specifically to give you help and
assistance on working with the advisers related to
franchising of your business
- Please see other websites such as the BFA for
information on franchising
- Speak to potential advisers early to get information and
guidance
- You should go to one or more of the main franchising
exhibitions in the UK, which are held 4 times a year, one
each in Birmingham (the biggest) usually in late September
or early October, London usually in April, Manchester
usually in late January or early February, and Glasgow,
usually in late May or early June - the BFA website has
details
- Advisers are only that. They can advise you, but
you need to decide whether franchising is right for you and
for your business
- You should not consider franchising until you have
established and proven that your business can be successful
and profitable
- You can however speak to advisers at an early stage to
get advice on how to set up and operate your business so
that it will be suitable to franchise when the time is right
and it has been proven successful
- Once you have franchised, you can not change your mind
unless you buy back all the franchised businesses, so you
should ensure that you have done all the necessary research
and preparation before you franchise
- Make sure that you have adequate funds, resources and
time before franchising
- The upfront fees from franchisees should not be viewed
as a main source of income, because they should
be mainly to cover your costs. Your profit will come
from helping the franchisees to succeed in their businesses
- You should not consider franchising if your business is
not solvent or relies on the sale of franchises to pay your
debts
- Franchising can be a very positive way of expanding,
because it means that you have a motivated, self-employed
network and less investment from yourself to
expand the business
- Consider how you will recruit your franchisees and what
the likely profile and characteristics of your franchisees
will be
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