We’re here to help you get the most out of franchising. Whether you’re a franchisee, franchisor or thinking about investing in your first franchise this website will contain a wealth of knowledge, tips and advice to think about.
Top Ten Tips for buying a franchise
1. Research the market, do your homework on the different types of franchise.
2. Choose a sector that you know something about and something that you enjoy.
3. Check out the credibility of the franchisor, stability and financials.
4. Speak to existing franchisees, they will usually tell it “as it is”.
5. Don’t overestimate your finances, be realistic.
6. Ask yourself, are you suitable for self-employment? Hard work and long hours!
7. Are you prepared to follow a system or do you like to do your own thing.
8. Check the franchise agreement, it’s too late when you have signed it.
9. Are you good at building rapport, you will need to be to gain customers.
10. Don’t rush into it, but if you go ahead give it 100%.
The 5 Questions:
Top Ten Tips if you want to franchise your business
1. Is your business successful?
2. Does your business have a good reputation in both the area and the sector.
3. Is your business profitable?
4. Is there sufficient profit margin for both franchisee and franchisor to benefit.
5. Can a franchisee earn £30,000 per annum.
6. Can your business systems and processes be replicated.
7. Have you got a robust sales and marketing strategy.
8. You need to have a management structure to run a franchise network.
9. Are you prepared to give up a degree of control over your business.
10. Franchising is not for everyone… Is it really for you?
6 Franchise Questions:
Top Ten Tips when recruiting franchisees
1. Have a profile of your ideal franchisee.
2. Have a marketing budget.
3. Have a lead generation and conversion system.
4. Make sure that the franchise model is sound and a good offering
5. Be honest and open.
6. Be selective. Don’t just take a cheque and hope for the best.
7. Rapport is important, follow your gut instincts.
8. Offer initial training and on-going support.
9. Use existing franchisees as testimonials.
10. Maximise income potential and minimise the risk.
Franchising is the practice of the right to use a firm’s successful business model and brand for a prescribed period of time.
bfa/NatWest Franchise Survey 2015
Beginning research on the franchising industry in 1994, the British Franchise Association (bfa), with the outstanding support of NatWest, has been building the most detailed long term franchise survey in the world. The full annual report can be purchased through the bfa’s online bookshop.
The following gives an overview from the last published report (January 2016) to give an overview of the UK franchise industry and Management summary.
Overall, the picture is of an industry sector in good health which continues to prosper:
The contribution of franchising to the UK economy is now reckoned to be £15.1 billion, an increase of 46% over the past 10 years and up 10% since the last survey in 2013.
The total number of people employed in franchising in the UK is 621,000, of which 321,000 are in full-time employment. This equates to an increase of 70% over the past 10 years
The number of franchisee-owned businesses has increased by 14% in two years, to 44,200. On average, those businesses are also becoming larger as the sector matures.
Average turnover continues to rise and over half now claim an annual turnover of more than £250,000
Employment per unit continues its upwards trajectory, with one-third now employing 10 or more staff
A record 97% of franchisee-owned units reported profitability, with 56% saying they are ‘quite’ or ‘very’ profitable.
Ownership changes in franchisee businesses are correspondingly low (4.6%), with failure rates much lower than for other SMEs generally
Franchisees’ satisfaction with their franchisor has never been higher, with 91% saying they are ‘mainly’ or ‘definitely’ satisfied.
Some 29% of franchisees now run multiple units.
80% of franchise brands in this country are UK-owned and developed.
One in five franchisees who launched their business in the last two years was under 30 years old when they did so.
Franchise Recruitment Facts:
A prospective franchisee will on average be looking at between 10 – 15 franchises.
They will then narrow that down to 2 or 3.
They will have on average 2 meetings with different franchisors before deciding.
Only around 17% of prospective franchisees actually buy a franchise.
On average a franchisor needs 50 prospective leads to acquire 1 franchisee.
Get in touch for a Free Initial Consultation
Call: 07795 960320
or email firstname.lastname@example.org
Please contact us if we can help with any aspect of your franchise development or management. With a team of experienced franchise advisors help is always available. Alternatively please use the enquiry form for all general enquiries.