PEOPLE
Nigel Toplis
BEFORE YOU SIGN UP
Taking on a franchise is a big
decision, right up there with
marriage and moving house, so
it requires careful examination.
My first piece of advice is
don’t rush, and don’t let the
franchisor rush you.
Secondly, when you think
you have found the right
business, the right opportunity
– stand back and ask yourself
these ten questions:
franchisee, and the intellectual
and support hub that the
franchisee can tap into at will.
Good franchising is built on
the foundations of a strong and
successful marriage between
franchisor and franchisee. The
phrase ‘in business for yourself,
not by yourself’, really does
capture the essence of franchising.
THE PACKAGE
With a franchise, the franchisor
offers experience, know-how,
proven operation methods,
marketing tools, sales training,
technical guidance, as well as a
corporate identity, trademarks,
and the all-important brand.
Franchising is very much a
two-way street though, where
the franchisor can achieve
faster expansion and gain a
higher return on capital, whilst
the franchisee gets a proven
business system, which will
include marketing, training,
support and more.
Because there is this extensive
support structure available,
franchisees come from a wide
range of backgrounds and
previous experience.
Running a franchise is
conducive to a variety of
transferable skills, including
project management,
marketing, operations, and
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sales, and the franchisor is
there to help if you need to
boost any skill sets.
OPPORTUNITY
Franchisees can often choose
where their franchise is based,
and many can be run from
home, meaning more time to
spend with the family and no
daily commute.
This is a huge benefit for
many franchisees, especially
parents. For young people too,
franchising is an excellent way
to launch their careers.
GOOD FRANCHISEE
Again, there is no single
template, but my own
definition is that a successful
franchisee is likely to have
all the attributes, not of an
entrepreneur, but rather of
an enterpriser. (“A person
who sets out on the path of
self-employment, and thereby
demonstrates his desire for the
rewards of enterprise and the
willingness to take risk, but
who is not planning either to
specifically develop and exploit
new technology, or create new
markets, or to expand and build
the proposed activity into a
large scale business - all targets,
which are the domain of the
entrepreneur”).
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Does it have a solid trading
history?
Is it financially
sound?
Does it have a history of
success?
Is there a genuine head
office support structure?
What does it actually
provide by way of support?
If the franchisor supplies
product, what are the Ts & Cs?
What is its position in the
market?
Are projected cash flows
realistic?
Does the company have a
finance facility with the banks?
How tough is its
interview process?
Thirdly, take the franchise
agreement to a bfa-accredited
lawyer, and get feedback on its
content and meaning.
Finally, work with an
accountant to draw up a
business plan.
So, signing up to a franchise is
just like preparing for marriage
– follow the steps, don’t rush,
ask questions (of yourself), take
advice, and make a decision.
Good luck!
Contact:
www. recognition-express.com
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29/08/2014 12:27