Franchise Advice
Create a safety net
David Paulson discusses the importance of identifying trusted advisers
advisers will influence some of the most important decisions you will face, so you have to be sure you can build a good working relationship with them; you must feel comfortable confiding in them, trust their integrity and have faith in their knowledge and experience. We’ve been trading since 1995 and now
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have a network of 195 franchisees, so know from experience the importance of finding advisors you can trust. Here are some of my top tips for finding the right experts for you.
The franchisor Before signing on the dotted line, make sure you meet face-to-face with the franchisor; meet their staff and take a tour of their operations. Don’t be afraid to make the visit more than once; if they want your business and they care, they’ll be happy to do this. It’s important to get a feel for whether this is a business you want to be a part of. Most importantly, talk to existing
franchisees. Pick who you want to talk to from the full franchisee directory, rather than having handpicked franchisees presented to you.
Banks If your franchise requires significant levels of financing, your local bank manager will probably not be the place to start. Instead, head for the bank’s franchise department;
hen you take the leap of faith to start your own business as a franchisee, who do you turn to for advice? Your professional
they are often in a position to offer better terms or lower interest rates because you are joining an established franchise. A good franchisor will have an established
relationship with the franchise departments of the major high-street banks, so if negotiations start to slow down, they should be able to step in and help facilitate a smoother application process.
“Starting your own business is a really exciting time, but can be daunting, so building up a circle of trusted, credible, expert advisers around you is vital”
Solicitors So you’ve met with the franchisor, done your homework, decided you like the business and you’re looking to go ahead. Then the intimidating 40-page franchise agreement hits your desk. A good franchisor will recommend that a solicitor reviews the franchise agreement before you sign it. Ideally you should find a solicitor with
specialist knowledge of franchising. We recommend our franchisees engage a bfa- affiliated solicitor, as using a solicitor with little experience of franchising can mean longer turnaround times. You’ll also need a solicitor if you take
on a lease for business premises or are thinking about buying an existing franchise,
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Businessfranchise.com | September 2013
so they will become a valuable adviser to your business.
Accountants Again, it is worth considering using an accountant with experience of franchising, particularly in the first year when you will also need to deal with how to recognise the franchisee fee. You will be reporting to the franchisor on a regular basis, so your accountant will need to help you set up a solid bookkeeping process. Franchisees often make losses in the early
years because of the significant investment to set up the business. A proficient accountant will help you to capitalise on this loss to obtain tax refunds and tax credits.
In summary Starting your own business is a really exciting time, but it can be lonely and daunting. Building up that circle of trusted, credible, expert advisers around you is vital. Sometimes they are there as support and a sounding board; but other times, they can literally mean the difference between success and failure. Shop around, do your homework
and wherever possible, opt for an adviser who has experience of franchising and its quirks. It’s unlikely to cost you more for the services but it could save you time, money and hassle. n
David Paulson
David Paulson is senior manager for UK and International franchise recruitment for TaxAssist Accountants and is a British Franchise Association Qualified Franchise Professional.
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