BFA Advice
Discover your tomorrow safely, with the BFA
Introducing the British Franchise Association and why it’s a smart move to check in with us for advice and guidance, on your investment journey
have been thoroughly audited to ensure they meet the BFA’s strict standards, we’d like to think we know about franchising: the dos and don’ts, the good, the bad and the sometimes downright ugly. If you’re thinking of franchising your business or buying one, read on. Then come along and talk to us, visit our website and let us guide you through the fantastic world of franchising!
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Are franchises profitable? Gauche of us to mention money so quickly, perhaps, but ultimately everyone goes into franchising to make some, so let’s talk about it! And while there are no cast-iron guarantees in franchising – whether you’re looking to franchise your business, or are looking to buy a franchise – it’s reasonable to ask!
...will my franchise business succeed? A franchise is a business like any other and so comes with inherent risks. While we can’t – and won’t – tell you your franchise will definitely succeed, if you’re looking to invest in a franchise then we can tell you, hand on heart, that our members’ businesses have been tried and tested, operate in an ethical and professional way and it is perfectly possible for them to succeed. The chances
s the hub of franchising in the UK, with over 300 franchisor members whose businesses
of a succeeding with a franchise business – compared with launching an independent start-up – are much higher.
Success rates: franchise vs start-ups Recent research from Experian revealed that approximately 4% of businesses have ceased trading by the end of their first year, 34% by the end of the second and 50% within three years of opening.* Compare this to the BFA’s last survey which found: “Failure rates for franchises remain very low, with fewer than 1% per year closing due to commercial failure” and you begin to understand the draw of franchising.
Why do franchises succeed? Great question! Quite simply, with a franchise, you are taught how to run a business using the franchisor’s tried-and-tested methods. A franchise is based on a successful operational business, the franchisor knows it works, because they’ve made it work, sometimes for many years, have made the mistakes and know what works and what doesn’t and, when you become a franchisee, they are going to teach you all those tips and tricks, it’s like their secret recipe. There is very little room for error and if you follow the model and work closely with your franchisor, you will have a very good chance of success (but still not guaranteed!)
What makes a successful franchisee? The best franchisees are those who understand they are buying a business and not a job, and who work incredibly hard to follow the franchise model to the letter. They don’t try to change anything; they appreciate that the beauty of franchising is the simplicity of repeating the model. They also make an effort to get to know the other franchisees in the network, to pick their brains and make sure they take every opportunity to learn from them. They are enthusiastic and ready to become brand ambassadors, flying the flag for themselves, their business and their brand.
What do I do now? Research. Lots and lots of research. It is imperative you ask the right questions to flush out the good from the bad. Aside from heading to our website to read our selection of articles, we’d also recommend you get a franchise specialist solicitor to look over any legal paperwork before you sign. We have a list of BFA-approved solicitors on our website:
thebfa.org We wish you great luck in your journey
and hope our candour will serve you well – go forward with positivity, but also with measured caution, and be sure to check in with the BFA for news, advice and guidance along the way. n
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*Analysis conducted on number of limited companies opening/closure rates 2013-2022, Experian Business Information Services.
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