Thinking of buying a franchise? The reason why it can be the best investment decision you’ve ever made

My impression of franchising before I worked in the sector, I’m afraid, wasn’t particularly positive.  I thought it was somehow a money-spinning way of getting people to buy something that they could do themselves.  However, I was completely wrong on that count.  If you invest in a good franchise, it is without doubt worth every penny you invest.  Having worked in franchising and now having clients as franchise businesses the amount of investment the franchisor makes on behalf of the franchisee is immense. 

So what do you get, or what you should get, for your franchise investment?

  • All your operational manuals for you to run your business
  • New Franchise owner training
  • All your marketing provided for you – This often includes marketing initiatives, marketing plan for the year, templates of social media posts, text for social media posts, access to branded/promotion material (at discounted rates).  The franchise will/should also have a national strategy to build the franchise brand.
  • If you are a regulated franchise then all your regulatory and compliance documents and helpdesk will be included
  • All your HR support including helpdesk, policies and procedures
  • Business support which should include access to experienced business managers for each franchise. They enable each franchise to achieve business growth, help them with P & L, projections, forecasting etc.  They also act as relationship managers between the franchise and franchisor. 
  • Technology – They invest in a technology solution for each of the franchises and provide support.  This technology can provide an amazing amount of data for the franchise as a whole.
  • Networking/best practice groups – This for me has to be the real added value for a start up business.  Within a franchise you have access to peer support from people who’ve been where you’ve been.  You can learn from them and are often supported by them.  As you grow you have available to you a wealth of knowledge and experience that you can tap into. It is also having those connections who you can call if you just want to speak to someone.  Friendships are formed that will last a lifetime.

The total cost for all of those elements for a start-up business would be around £35,000 per annum. That is really hard to bear initially.  As a start-up business myself I don’t have the capital to do that therefore, what I am doing is certainly not as effective as a franchise.

Below is a checklist to help you decide to choose a franchise

  • Check that you match in terms of culture and values. This has to be the single most important aspect you need to share.  If you don’t share their culture and values then you will fight at every opportunity and it will be a hard relationship.
  • Sense check – how does it feel when you make your initial enquiry? When you go to their national office ask to meet with a couple of the people who will be supporting you.
  • What support will they provide – They should be including, the support as mentioned above. 
  • Speak to 2 or 3 franchisees who have been with them some time.  Have a list of questions for them.
  • Ask them what their long term plan is as a franchise. Where do they want to be in the market place?  What is their strategy to get there?

I hope the above helps but if you do want to chat about whether it’s right for you then please do give me a call on 01495 550401 or contact me here