Go away no stone unturned! 5 inquiries to ask earlier than you spend money on a franchise
When researching franchise alternatives, it’s important to get insights past the usual details and figures. Whereas it may be tempting to deal with the financials, investing in a franchise is a long-term dedication. Constructing a robust working relationship along with your franchisor goes to be essential to your ongoing success, so you have to be sure that your values and expectations are aligned to keep away from any surprises.
Forward of The National Franchise Exhibition, going down on 6 & 7 October on the NEC, Birmingham, right here’s 5 questions you would possibly wish to ask to delve somewhat deeper.
What’s your USP?
As soon as you recognize the fundamentals – how lengthy the model has been working, what number of franchisees there are within the UK and many others – it’s essential to grasp what units every franchise alternative aside.
Ask the franchisor what they see as their model strengths or USPs (distinctive promoting factors). They need to be capable to summarise these succinctly, and clarify how they convey these to potential clients too!
It will assist you to determine the place the franchisor’s priorities lie, how clearly they can articulate their imaginative and prescient for the longer term and the place the model sits inside their particular market.
What does a typical day seem like as a franchisee?
If you’re contemplating changing into your individual boss, you’ll in all probability have an thought of what you need your working life to seem like.
If you’re occupied with being an proprietor operator; will the coaching and assist supplied by the franchisor plug any abilities gaps and allow you to leap straight in? Whereas sector expertise isn’t important for a lot of franchise alternatives, asking this query will assist you perceive what specialist abilities you would possibly must study.
Maybe you’ve got ambitions to scale at pace and construct a multi-unit portfolio. In that case, you have to gauge if day-to-day commitments would make this a sensible objective – whether or not that’s immediately, or after one/two/5 years of operation. Discovering out what share of their time the common franchisee spends working on their enterprise, relatively than in their enterprise is an efficient place to begin.
What prices do I would like to think about?
Over and above the preliminary franchise charge, what different prices and commitments do you have to account for? This might embrace leasing premises, refurbishment, gear, or advertising and marketing and promotional prices. It will assist you to calculate when you possibly can anticipate to realize a return in your funding.
You’ll usually be supplied with monetary projections, however keep in mind these are usually not guarantees of efficiency. The success of what you are promoting will rely in your dedication and abilities, in addition to exterior elements. It may be helpful to ask for previous efficiency of present franchisees so you possibly can see what a typical 12 months one, three and 5 appears like that can assist you determine whether or not a selected franchise will assist you obtain your monetary objectives.
How would you describe your organisation’s values?
Not solely is it essential to grasp the core values of the model, but additionally to see some examples of this in follow. If you’re enthusiastic about giving again to your local people, for instance, is that this one thing that the franchise community is dedicated to and weaves into the each day workings of their companies?
How do you assist your franchisees when they’re prepared to maneuver on?
Though it might appear untimely to speak about what occurs after your franchise time period earlier than the settlement is even signed, you possibly can’t skip over this level. It’s price asking what their franchisees sometimes re-sell their companies for, how they’ll help you, or whether or not you possibly can present what you are promoting to a member of your loved ones.
Irrespective of the place you’re in your entrepreneurial journey, attending a Franchise Exhibition is the proper alternative to immerse your self on the earth of franchising and study extra about your choices.
Go to The Nationwide Franchise Exhibition on the NEC, Birmingham, on 6 & 7 October to fulfill the groups behind main manufacturers, collect important insights throughout a packed programme of fifty+ talks, and get free, knowledgeable recommendation from franchise legal professionals, funding suppliers and the BFA.
With alternatives in meals & beverage to care, schooling to health, and funding ranges ranging from lower than £10,000, there’s a franchise to go well with all budgets and ambitions.
Discover out extra about what’s occurring and e book your free tickets at FranchiseTickets.co.uk