business: franchising
“The current economic and financial climate is tough, especially for budding entrepreneurs; becoming a
franchisee is a more secure way to start your own business.”
“A franchisee would normally go through a strict interview process to ensure they are a suitable fit with the franchisor,” explains Nilam. “This is when considerations such as the franchisee’s existing business commitments and funding will be evaluated.”
“In the current financial climate, banks are supporting the franchise initiative, as they see the set-up as safe, which is a great position to be in when looking for an investment opportunity,” she continues. “Also, take in to account additional costs, which you may incur in the first year: this could be anything such as building maintenance, uniforms and additional training costs.”
When searching for funding options, you can seek advice from specialist franchising teams that are available in a large number of banks throughout the country. They will offer support from their franchising bank managers, who can advise you on how you should be constructing your franchise package.
However, before any decisions have been made, you will also need to find a franchise solicitor; find someone with the necessary experience, who understands the complexity of franchise agreements. The British Franchise Association (BFA) can provide you with all of the advice you need, including a list of accredited UK solicitors who are experienced in everything from franchise agreements to litigation.
The franchise agreement must be both fair and comprehensive, and outline the obligations and rights of both the franchisor and the franchisee. Be aware that it is your responsibility to protect your trade and service marks, so getting it right from the outset is vital.
Throughout the entire process, big decisions will need to be made in regards to money, operations and legalities. Be prepared for a lot of paper work!
Research is key when embarking on your franchising journey. Image: ©
istock.com/mantonino
Before you commit to any long-term plans, you may wish to set up a franchising pilot operation. This will help you decide if franchising is for you, and will test the initiative to ensure it is beneficial in the long run.
A pilot operation will ideally run for 12 months, and during this time, you can identify any problems or issues that may arise, adding them to your operations model as you go along.
Changes in the market place may also have a huge impact on your business, so running a pilot operation through the initial 12 month period will enable you to identify these changes and determine the effect that they will have on your franchise.
One of the biggest advantages of running a pilot operation is that you can use it as your ‘trial and error’ stage, trying out new ideas and monitoring the results to examine what works and what doesn’t.
The successful running of your pilot operation will be essential to the preparation of your franchise package. The experience gained from the pilot will provide the basis on how your package will be structured going forward, as well as being used as a training outlet for your franchisees.
become a franchisee
If starting a business from scratch seems all too daunting, then becoming a franchisee may be the route into the industry that you’re looking for.
The current economic and financial climate is tough, especially for budding entrepreneurs; becoming a franchisee is a more secure way to start your own business. You will have the stability of a proven business format, meaning you get to avoid a lot of the general set-backs and mistakes made by start-up entrepreneurs; the franchisor will have
GUILD NEWS 107
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124
