Buying a Franchise offers many benefits over starting a business on your own. The franchisees benefit from the training and ongoing support that they receive whilst trying to make their business successful. People starting a business on their own often have no help or guidance in the day to day running of the business!
The franchisees receive guidance on location, fixtures and fittings, marketing and operation of the business model. This guidance is based on years of experience the franchiser has gained not only from running the business model but also from advising other franchisees.
Buying a franchise business is at least a five year commitment and as such should not be taken lightly. It is important to make the right lifestyle choice rather than basing the decision to buy purely on profitability of the business model.
A prospective franchisee should always look at the market trends to ascertain whether the need and requirements of the products of the franchise opportunity are predicted to grow or decline over the medium and long term. Getting advice from an experienced accountant can help in this respect.
What makes the franchiser’s products better than the competition? Is the franchisor continually investing in improving the products to reflect changes in latest trends and requirements of the customers? Analyzing which products have been changed and new ones introduced over the last five years will help in this regard.
The territory is just as important as the franchise model. Not all franchises work in all territories as each area has their demographics and buying patterns. Decent knowledge of the local area is invaluable and the choice of which type of franchise business to buy should be made with regards to this information.
Making the right choice of franchise that is based on individual skills as well as the individual requirements of each particular territory should serve to ensure that the business model works both in the short term and the long term