Researching a franchise - How do you know when you’re ready to buy?

With the National Franchise Exhibition right around the corner on the 4th & 5th October, your head might be brimming with questions to ask the franchisors you meet there. But what about the questions you should be asking yourself?

Here, our Franchise Development Manager, Luke Spellman, shares his insight into the questions you should be asking yourself before you decide to start your own franchise journey to help you to determine whether you’re ready to invest in a franchise, and the right franchise.

  • Are you in a good financial position?

There are franchises for everyone and with very different entry costs, from under £10,000 to over a million. Consider how much you have available to invest. You will need to pay the franchisee fee, plus have working capital available to get started and to support you and your business. The good news is that the banks tend to look favourably on franchises because of their high success rate, so often lending is available.

  • How well do you understand the business?

You’re not just setting up a business; you’re also investing in an existing and often well-known brand. It’s essential to understand the ethos of the franchise, what they do, the quality of their products and services, the network and much more. Ask yourself, do I want to do this? Do I have the passion and drive to make a great success of this franchise? It needs to be something you can believe in and enjoy.

  • How well do you understand franchising?

Franchising offers the best of both worlds: you can own a business with a big name on a local level within your own community, with the added bonus you are not setting up alone. There is a business model for every franchise which is tried and tested. Franchisees follow the model and work within these guidelines, so it is important to understand that you are part of a network, and the key is consistency for the brand and all it stands for.

  • Do you have the time?

Often people can think that owning a franchise is more like having a job, or they can have a job as well. It is unlikely you will be able to run a new franchise territory as a side project, especially the larger franchises. It requires full attention to be successful, but as you become established and employ more people, you can become more hands-off and work on the business, not in the business.

  • Are you open-minded when it comes to location?

Your chosen franchise brand may already be well-established and may not have territories available in the area you want. So, you may need to be open to travelling to your territory, or relocation to a new area might be required. All franchise territories are carefully mapped and selected in terms of their demographics, suitability for the business and their target audience, all of which support franchise owners in building a successful business.

Hopefully this article has provided you with clarity when it comes to knowing when you’re ready to buy a franchise.

We look forward to seeing you at the National Franchise Exhibition on 4th and 5th October and if you’d like to arrange a meeting with the team at our stand G240, please get in touch, our Franchise Development Manager Luke Spellman is here to answer any questions you have on the franchise opportunities we have on offer. You can email him on [email protected] or call 01925 730273