by Angela Delaney
What are the steps of becoming a franchisee?
Becoming a franchisee follows a slightly different process than, for example, simply setting up a business from scratch. And it can be confusing to sort through all of the available franchises in the UK to find one that is reputable, that is best suited to your particular skills and ambitions, and one that will also give you the kind of return you are after. However, by following the steps detailed below, you will be in with a good chance of finding your perfect match and becoming a successful franchisee.
- Visit the British Franchise Association to review current opportunities with accredited franchise companies.
- Investigate levels of investment - how much is the franchise asking for, how much are you willing to pay? Will you invest personally or will you need to borrow capital?
- Ask what the expected rates of return are, and make sure this is in line with what you want.
- Ask yourself what you are good at - what skills do you have? What have you always wished you could do? Choose a franchise that matches the answers to those questions.
- Do your research - ask around, find out how well-regarded the franchise is within the industry, and try to understand more about the reputation of the brand and its franchises.
- Be nosey - dig into the specifics of the franchise opportunity. What training and support do they offer, what are the ongoing fees and the daily operational expectations?
- Arrange meetings with the franchise opportunities you have shortlisted and be prepared with a list of questions to see which one is best for you.
- Ask the franchisor to introduce you to existing franchisees so you can get impartial feedback from someone who is actually running a franchise.
- Be cautious before you sign anything. Seek advice from consultants, solicitors and accountants. Make sure you know what you are committing to.