Franchise Advice
Tried and tested...
…it’s a phrase you’ll hear a lot on your franchise research journey, because following a proven system has benefi ts
above and beyond starting up on your own. If
you’ve ever asked yourself ‘why not go it alone instead?’ then Nick Williams of Ashtons Franchise Consulting has some answers
It’s a ready-made business model In buying a franchise, you are investing in a proven and fi ne-tuned business blueprint. It is, therefore, important that you are willing to work within the confi nes of the franchisor’s successful systems and procedures. This is partly because the franchisor has gone through the trial-and-error development, learned how to avoid mistakes and performed the fi ne tuning in developing its business package on behalf of the franchisee. It’s also partly to encourage standardisation of the franchisor’s products and services nationwide. This ensures that no franchisee is producing products or services to a diff erent standard to the rest of the network, which could damage the brand. A franchisee that comes to resent the authority of the franchisor is one that was probably never suited to franchising in the fi rst place – and these situations are easier to avoid than to remedy. If you are the type of entrepreneur who wants retain total control and to tinker with the business, you may be better off considering other avenues of business ownership.
The fi nancial considerations Franchises are very aff ordable, with some superb opportunities available for an initial investment under £15,000. Additional funding is readily available from the banking industry, within which there is a great deal of recognition for the reduced risk inherent in franchising. Like you, many bank managers will be well aware of the survival rate of franchises compared with that of small businesses. A variety of high- street banks have now set up specialist
franchise departments and have developed relationships with franchise brands seeking to assist their franchisees in winning loans. Many franchisors will also help you develop your business plan, but of course it will take determination on your part to see it through.
The risks are lower
Starting your own business is taking a big risk. Buying a franchise reduces the risk. Ideally you want to minimise risk as much as possible, therefore you should choose a strong franchise system with a proven track record. If you love to take big, bold risks, then franchising may not be for you. If you are careful and thorough in your franchise research, so you know just what you are signing up for, then you have the knowledge to succeed as a franchisee.
Franchising is based upon a long-term business relationship between franchisor and franchisee. The franchisor has the proven business formula, method and model. The franchisee has the drive and wherewithal to use, follow and build a business. Both must collaborate for the franchise business to reach its potential and both have an interest in seeing this succeed. As we progress through the 21st century, an ever-growing number of owners of successful businesses will create new franchise opportunities.
Nick Williams
is managing consultant at Ashtons Franchising Consulting
48 |
BusinessFranchise.com | September 2018
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