Is buying a franchise the correct choice for you? Here’s what you need to consider
If you regard yourself as having an entrepreneurial spirit, you may decide that the best route to success is to work with a brand that has already established itself, rather than launch your own business in what can very often be a crowded and convoluted marketplace.
The benefits associated with opening a franchise are many: they can be relatively cheap to launch, the established name means there is – generally speaking – already a ready and willing audience, and you, as the franchise owner, will have support from a company that has walked this road many times in the past.
However, launching a franchise is not for everyone, so what do you definitely need to think about prior to diving headfirst into the franchise world?
1. Is the business plan valid?
You cannot take it for granted that the business plan is watertight. No business is immune to financial and operational difficulties, and the last thing you want is to find yourself dragged into any kind of turmoil that isn’t of your making. Take the time to assess the overall business model, do your market research, and come to an educated conclusion.
2. Can you afford the initial financial investment?
While opening a franchise can be cheaper than launching a completely bespoke business, there are still costs that need to be considered. For example, you will need to think about how much you will need to pay for rent, any potential accounting fees and associated costs, insurance, products, training etc. You will also need to speak to the parent company to see how much they will take in royalty fees. It is vital to get these finances understood from the outset.
3. Is it the life for you?
What are you looking for in your work? Do you want to do all of the hard graft? Do you want to build a business from the ground up? Do you want to be in full control of the products or services you’ll provide? If so, running a franchise is perhaps not for you. However, if you enjoy the idea of taking a viable business and making it even more successful and will relish the opportunity to embed yourself into a company and learn how to run a business from the inside, then it’s definitely something you should consider.
Find your ideal franchise by taking a look around the UK Franchise Opportunities directory.