If you are completely certain that you want to run your own business and have carefully assessed the advantages and drawbacks of each possible strategy, finally settling on franchising, chances are that you’re feeling quite overwhelmed with all the franchising options available to you.
Fortunately, we’ve prepared a comprehensive strategy to narrow down these franchising options that you can employ.
Less is more
While you have undoubtedly considered a dozen potential franchisors or so, it is best to invest your time and resources into investigating two or three franchising options. Not only would that supply you with thorough knowledge of these companies thus helping you make an informed choice, but you would also learn more about yourself and about what you want from your franchisor.
In order to make the right choice in relation to franchising, you need to not only do extensive due diligence into the potential candidates, but you need to also perform a thorough self-assessment. We’ll talk about the why’s later in this article – this section is about the how’s. How are you planning to utilise your current knowledge, skills and experience upon beginning your new venture? How are your financial objectives aligning with your projected returns? How would your strengths and weaknesses help and/or hinder you running the business? These questions, as well as others of the sort, are what’s going to help you narrow down the potential franchisors whose offers align with the answers to these questions.
What are your priorities?
To narrow down your options, you need to have a clear idea of things most important to you. This is the most important “why” of the process. Why are you applying for a franchise? What do you hope to get out of starting your own business using the franchise scheme? Why are you deciding to leave your old life behind and start a brand new thing? Why do you think you’d enjoy making a career as a franchisee? Your answers to these questions should align with your final few chosen potential franchisors, and you need to be as specific as possible when you answer them in order to choose your perfect franchisor.
What is on offer?
Of course, when narrowing down your options, you need to consider both sides of the equation. First things first – check that your franchisor is a member of the British Franchising Association. If they are, they have passed the strict franchising membership criteria based on the Franchising Code of Ethics. Once you verify the membership, take a detailed look at both general and specific issues.
We recommend considering general issues including:
- How the franchisor is performing within their market;
- Where the franchisor sees themselves in the next five years;
- Main players of the industry and how they compare to franchisor.
Regarding the issues specific to you as a franchisee, you ought to consider, amongst other things:
- Availability and features of funding options;
- Availability and features of training;
- Collective purchasing power;
- Issues of allocation of exclusive territories.
You will be working with your franchisor for a long time, if all goes well, and it is therefore important that you have a productive, mutually beneficial relationship. BFA offers a helpful list of questions to ask a franchisor, but in contemporary business, personal touch is everything, so don’t limit yourself to this list and get to know franchising options as well as possible before making any decisions. This is an ongoing process that you start during your due diligence, continue whilst narrowing down your options, and that will continue once you start working with the franchisor. A partnership that you can both benefit from should be a long-term goal for both the franchisor and the franchisee.
A wise business decision takes time, effort and planning, and choosing a franchise is no exception, especially given the sector’s impressive revenue figures for last year alone. By carefully assessing your franchising options in terms that are both general and specific to the industry and to you, you would be able to make an informed choice that would set the right course for your career for the years to come.
Ready to narrow down your options and start researching?
Take a look at the franchises available on Reed Commercial now.