“Just because someone is offering you a franchise, it doesn’t mean they are guaranteeing you success and any prospective franchisee should do their market research." This should include investigating the franchisor, talking to existing franchisees and taking a close look at the figures for projected earnings, because if the franchisor fails, you have lost your investment and very often your business. One of the most common reasons for a business to fail in its infancy is cash flow and for franchisees this can be more of a risk because they have invested in the franchise fee in the first place. “Making sure you have enough working capital is vital for a new business and a good franchisor will give you very clear guidelines of what your expenditure will be in the first year,” he said.

“Put this into your business plan in addition to the franchise fee to give an accurate forecast of what funds you will need to have available from day one.” Franchisees also need the motivation and business acumen to drive the franchise forward, developing marketing and new business strategies for their outlet. “Some people believe that a franchisor should spoon-feed them leads to get them started, but while head office should support a new franchise with marketing and lead generation, having some get up and go is essential,” said Tony. “And remember, the franchise relationship is a two way street. It is not only a question of the franchisor providing support to the franchisee, but the franchisee needs to produce results too.