Franchise Advice
“It is essential that you speak to as many existing franchisees as possible to establish the level of support they have received from the franchisor”
projections. The franchisor should give you access to their franchisee network if they feel that you are a serious investor, although understandably some may wish to manage the process of contacting their franchisees. Ensure that the franchisor doesn’t cherry- pick who you speak to, directing you only towards franchisees likely to provide a positive view of the franchise.
You will need to look at the potential for the business in your chosen local market and research your competitors. A well- prepared business plan is vital in helping you secure the financial assistance you may require from a bank. Always approach the bank’s franchise department rather than contacting the local bank-manager directly, as they will facilitate an introduction to an experienced trained franchise manager based locally to you and ensure that the relevant franchise information is made available before any meeting takes place. Before you sign on the dotted line get the franchise agreement independently checked and explained to you by a bfa-affiliate franchise solicitor. Don’t be surprised to find these contracts to be weighted in favour of the franchisor. The terms of the agreement for well established franchises are unlikely to
be negotiable, however it is important that you fully understand the contract you are entering into.
Gut instinct and common sense will take you a long way towards deciding whether the franchise opportunity you are looking at is the right one for you. It really is a case of removing those blinkers and thinking through both the benefits and disadvantages of the franchise you are considering. If you can do that, you’re on the right track. n
Richard Holden
Richard Holden is head of franchising at Lloyds TSB Commercial. Phone: 07802 324018 Email: franchising@
lloydstsb.co.uk
March 2012 |
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