What is a franchise?
You may already be thinking to start your own business, but not sure what route to take - well franchising is a viable option, which is growing faster everyday. It is one of the easiest and safest ways of starting your own business - most franchises are in profit after their first year of trading.
Choosing the right franchise can take some time - so it is important to ensure that you are going into the right field. Franchising has a wide variety of businesses to choose from, so you are not limited to just running a deli shop. You can choose to run an accounting firm, property company or even a travel and leisure agency.
When you decide to run your own franchise, you do not need to worry about training, as it is all done by the franchisors, with 75% of them providing in-house training. This encourages a healthy relationship between the franchisors and the franchisees.
To get you off on the right track, here is a list of things you should look into before committing to any franchise:
- Look into the business model - what is the overall concept?
- Evaluate whether franchising is the right option for you
- Assess whether you can afford to run a franchise - if you need to run something smaller then start with a homebased business.
- Do your research - find out what sort of franchises are available to you then choose the one you can see yourself doing for years to come.
- Communicate with other franchise owners and find out what it was like for them to when things really kicked off.
What is franchising?
A franchise is a company that has already been tried and tested by the owner; the franchisor. With a franchise you will be running the business yourself - but with a network of support. You will be taught how to run your franchise using the same methods as the founder in order to capitalise off your business faster.
To get the ball rolling, you will need to pay the franchisor for a package that will allow you to have exclusive access to use the brand name, operational methods, their technology or products they will provide for a certain amount of time. You will receive all necessary training once you have been accepted as a franchisee - this training may include marketing support, accounting or other administrative support. Once papers are signed, you will be agreeing to run the business according to the franchisors methods and standards.
Don't rush into this, make sure you are well informed in what becoming a franchisee means before you take your hunt seriously. This initial stage is worth investing your time and money into - you could save you much more than you stand to lose if thorough research was not done prior to signing a contract.