The Approved Franchise Association

a new way forward
for franchising

0208 088 2400
     

8 Things To Consider Before Buying A Franchise

Make sure you do your research ...

 
 


Have you ever thought of running your own business but are not sure where to start? Franchising is a great way to work with an established brand, so here are my top tips on buying a franchise ...

You're going to be working in your franchise long term, so choose wisely!

You're going to be working in your franchise long term, so choose wisely!

copyright: tashatuvango / 123rf stock photo (licensee)

There are lots of franchise companies out there to choose from, each with their own products, services, branding and support. Some are national brands and others are spreading out throughout the country. But which one is right for you?

"How do you make the right choice?"

My advice would be to choose something which excites you as you're going to be working on this business for the foreseeable future. You want something you're excited and passionate about.

It's also about support because you don't want to buy a franchise from a company who take your money then leave you to get on with it. When looking at franchise businesses, carefully analyse the whole package to see if it's right for you.


Here are my 8 top tips on buying a franchise:

  1. What will you be getting for your investment? Do you pay your money and that's it or is there ongoing help?

  2. What is the initial cost of the franchise? Does it seem to be in line with other franchises of its type? Cheaper isn't always better!

  3. What support does the franchisor offer after the initial training and investment?

  4. How much are the monthly management fees? Is it a flat fee or a percentage? Is it in line with other franchise businesses of the same type? What are you getting for your monthly management fee?

  5. How long will it take you to build your franchise? How much capital will you need to live on until you are making a good wage?

  6. How successful are the other franchisees? Ask to talk with other franchisees as a good franchisor will encourage this at the right time.

  7. Look at the demographics of your area, if it's a shop or restaurant think about the location and parking.

  8. Franchise agreements are often in favour of the franchisor. That's normal, but do check the renewal requirements and discover if there'll be another investment required at this time? If in doubt get a franchise lawyer to look at it for you.

These are just a few things to think about before investing.


If you are thinking of buying a franchise and are maybe a little confused with all the choice, check which franchises are members of organisations like The Approved Franchise Association or The British Franchise Association.

Membership of these associations is no guarantee you're buying the right franchise for you, but both organisations are there to help as each has standards the franchisors must maintain if they wish to keep their accreditation.

"Don't forget The European Code of Ethics for Franchising!"

And finally, ensure the franchisors you are considering working with abide by the European Code of Ethics for Franchising. At the AFA, we ensure they do before we allow them to join.

If you'd like some independent advice about buying a franchise, please call on 0208 088 2400 or click here to send us an email enquiry and we'll get back to you. You can also visit our website for further information.

Until next time ...

CLAIRE ROBINSON


   Buffer
Click here to Share, Email or Bookmark this website

Précis (14)





More about Claire Robinson ...

I am a serial entrepreneur, having successfully established a networking group, a magazine advertising company and a building contracting company over the past few years.

Now living in Devon, I'm CEO of The Approved Franchise Association. I have a passion for business and am determined to grow the AFA int the leading franchise association in the United Kingdom.

Telephone:

0208 088 2400

Website:

http://www.theafa.org.uk


More of my blog posts for you to enjoy ...

Member Spotlight: Ovenu
Oven cleaning and valeting experts ...

Is Your Website Legally Compliant?
In regard to privacy and cookies ...

Brexit And What It Could Mean For The Franchising Industry
My first piece of advice? Don't panic ...

Member Spotlight: EnviroGroup
Kitchen and air duct hygiene ...

Member Spotlight: Senior Citizen Services
Property maintenance for the elderly ...

Inspiring Millennials Into Franchising: Part 1
The capacity to achieve great things ...

Member Spotlight: Nationwide Cleaners
Domestic and commercial cleaning services ...

Let's Get Back To Basics: What Is A Franchise?
It all started with a sewing machine ...


 

Keep in touch ...

Send us an email
View ourRSS newsfeed
Find us on Facebook
Follow us on Twitter
Connect with LinkedIn

By Category ...

Benefits Of Membership (7)

Exhibitions (1)

Franchise Success (3)

General (12)

Legalities (2)

News From Our Franchisors (12)

By Popularity ...

8 Things To Consider Before Buying ...

Let's Get Back To Basics: What Is A ...

Issues To Consider Before Signing A ...

Introducing The Approved Franchise ...

Brexit And What It Could Mean For T ...

Making A Difference In Your Local C ...

Top Tips For Starting A Business Wi ...

The Benefits Of Joining The Approve ...

EWiF: Changing The Face Of Franchis ...

Is Your Website Legally Compliant?

Quote of the day ...

"Defeat may serve as well as victory to shake the soul and let the glory out"

Login ...



Remember me