|
In
a UK franchise industry worth £9.1 billion and currently 718
franchised businesses, where do you begin to choose the franchise that
is right for you?
Your first port of call should be to consult the British Franchise
Association (BFA) - the only authoritative body for franchising and
representative of good, ethical franchisors in the UK who can help you
with any enquiries.
Choosing the right franchise
can be made easier by referring to the BFA Franchisee Guide
(sponsored by Lloyds TSB). The Guide is widely acclaimed and
invaluable in providing a wealth of step-by-step information for
potential franchisees, to enable them to understand the nature
of business format franchising, how to evaluate a franchise
prior to investing in the system and, ultimately, to ensure that the
right decision is made. In particular, it covers the legal and
financial aspects, the potential benefits and pitfalls of franchising,
and what information should be obtained from the franchisors before
the investment, together with a full list of BFA members and franchise
opportunities.
Real life franchising experience and the tools to
evaluate any franchise
opportunity can be gained by attending one of the BFA’s Franchisee
Seminars. The seminars feature case study presentations from
Franchisors and Franchisees, together with presentations from the BFA,
Bankers, Lawyers and Accountants. A recent attendee to one of the
seminars commented: “A well informed,
professionally run seminar with plenty of useful, practical advice.
All clearly and honestly presented. Well done.”
Dates and venues for the BFA’s
Franchisee Seminars can be viewed on the BFA’s website:
www.thebfa.org
You
must take responsibility for checking out the franchise business,
ensuring that financial projections are both sensible and realistic.
Make sure you get the franchise agreement checked out by a BFA
affiliate lawyer. Of course, you can verify the value of all answers
by the experience of existing franchisees. They will constitute a very
important factor in enabling you to reach a decision. After all, they
have been living with the business and with the franchisor for some
time already. Ensure that you interview your
choice of franchisees - ask the franchisor for a full list of his
franchisor and contact them directly. You should even spend time with
the franchisee at work if you can, to get a feel for the business and
the relationship with the franchisor.
Cross examine yourself as well!
How much time and financial commitment can you give? What are your
expectations and what personal qualities can you bring to the
franchise opportunity? Remember that franchising is not an easy option
and will require investment of a lot of hard work and money,
particularly in the early stages. At the end of the day, you must be
prepared to be realistic about what you want out of the business and
what you are prepared to put into it. Many franchisees have risked
their home, savings and family relationships by investing in business,
consumed by dreams of becoming successful business owners.
This may certainly be the case - 88% of franchisees last year reported
an overall profitability - but the secret is to err on the side of
caution and do your homework. Make your first call to the BFA.
|
