FRANCHISE ADVICE


Join our club! O


ver the summer, on a day out at a nearby beach I bumped into my cousins and their young


for local initiatives.


daughters, who have grown enormously since I saw them last (I think about four years ago)! We immediately fell into deep conversation, catching up, and spent the rest of the day together – a lovely afternoon! And what does that have to do with


franchising? Well, it set me thinking about the power of relationships and the strength of an extended family. Not long ago I read an article reporting


that company insolvencies rose sharply during quarter two of this year, at least according to the latest figures fro the Insolvency Service. Quite a sobering thought, but perhaps one of the most powerful reasons for becoming a franchisee. There is clear evidence – backed by long-term studies undertaken jointly by NatWest with Warwick


 rachise etr ps tether spps e ather


University – that 40% of new businesses fail in two years. There is further evidence from the NatWest franchise survey that 90% of franchisees will still be trading five years after they begin in business which goes a long way to reinforcing the power of the franchise model. So, let’s just think about why it is


advantageous to own a franchise:  Low failure rate. As already discussed.  Business support. ranchisees benefit from assistance throughout the life of their business – all the input, training, equipment and supplies they need, together with ongoing training and help with management and marketing – exposure from national marketing campaigns as well as collateral to use


 Buying power. The collective buying power of the parent company passes on the preferential terms that it negotiates to franchisees so that stock, supplies and equipment are normally less for the franchisee than for a small startup with no negotiating power.


 Brand recognition. Many well-known franchises have national brand name recognition. Owning a franchise is often similar to buying a business with built in loyal customers.


 Strength in numbers. Reverting to my theme of 'family', franchisees pull together and support one another. They pool best ideas and best practice. Being part of a family-like network gives you that security. During the dark days of Covid, franchisors stepped up to the plate and invested heavily in helping their franchisees through troubled times. Conversely, there is very little support of this kind available to an independent entrepreneur. Many people who start a business themselves comment on how lonely it is being the person to make all the decisions and, if they have not been in business before, having to think through every aspect without experience and knowhow on which to draw.


 Proven capability. The franchisor has already tried and tested what does and doesn't work within the business. That knowhow is passed on to the franchisee so their risk is reduced.


 asier aess to finane Banks are ore likely to finance the purchase of a franchise than the launch of a new business. An established franchisor will help its franchisees secure finance and have very close relationships with chosen banks.


 Easier staff recruiting. Finding good employees is a critical factor for many independent small business owners. A franchised business will have a recognised name and create more recruiting power than


BUSINESSFRANCHISE.COM 21


The emrace of a franchise networ is lie that of an etene mily an unknown business entity.


 ustoer onfiene Customers trust that the individual locations of a franchise network offer reliability, good value and service.


 R&D. Ongoing research by the franchisor provides franchisees with new business opportunities, adding value to the business.


 Professional and personal development. Franchisors typically offer their franchisees comprehensive training in sales and other business skills. Franchisees also gain education, recognition and social opportunities via meetings and communication with fellow franchise owners.


People will always want to be their


own boss, but more than ever, in these uncertain times there is real value in becoming a member of the franchise family! As you explore the opportunities at the National Franchise Exhibition, do so with eyes wide open, but also with a sense that good quality franchises have survived many periods of economic turbulence and will continue to do so. Good hunting! 


NICK WILLIAMS is a franchise consultant at Ashtons Franchise Consulting (stand J80)


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