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19th February 2008
Choosing the
right franchise for you
Franchising is a
proven route for
people looking
at starting
their own
business and
choosing the
right franchise
requires the
same research
that starting
any business
does.
Here
are five hot
tips on choosing
the right
franchise for
you:
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Decide what you are prepared to commit to
– Before you even consider the type of franchise
you want, make some decisions about what you
want to commit to. Do you want a full time,
hands on franchise or are you looking for
something more flexible to fit around your
lifestyle? How much do you want to pay for your
franchise and what kind of returns are you
looking for? Do you want to work in the business
every day, or are you looking for a more hands
off managerial role?
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Choose an industry you are passionate about
– Setting up any new business requires
commitment and dedication, so make sure the
business is something you will enjoy doing for
years to come. And if you are investing as a
couple, be sure that you are both happy about
the choices you make.
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Research the market
– Don’t assume that because the franchise is
available that the industry is robust and has
the potential for growth. Do your research and
look at how the industry is likely to perform in
the next five, ten and twenty years. No industry
is future-proof, but you need to assess how the
business will perform in the long term,
especially if you plan to sell it.
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Choose your partner wisely
– Look at the size of companies operating in the
industry – too small and the support may not be
there, too big and all the prime sites may have
gone. Pick a company which has an established
track record, as a business as well as a
franchisor, and can offer you the level of
support you will need on an ongoing basis. If
possible, choose a British Franchise Association
member, and check out any company you are
considering with the BFA and Companies House.
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Making the final decision
– Before you sign on the dotted line, there are
some very important checks to make. Make sure
you visit several sites and visit without giving
notice. Talk to as many franchisees as you can,
not just those names supplied to you by the
company. Check the company’s predicted financial
results against actual franchise results of the
most and least successful franchisees. Look on
the internet for details of the company and its
directors. Only when you are totally sure should
you sign on the dotted line.
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Franchise Consultants based in the North |
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