Is franchising your next step?
Tom Endean
Marketing Manager
British Franchise Association (bfa)
With majority of the past two years providing less than positive news for many businesses of all shapes and sizes, followed by a rise in unemployment and diminished confidence, does today’s market still encourage many to think about new businesses of their own? If so, they would need to have a very robust proposition.
Interestingly, despite all of the negative press, recent months has seen the franchising industry stay resilient. Many companies have weathered well, attracting increased interest from potential investors and even seeing growth.
Time and again, franchising has greatly out-performed other start-up businesses. Its formula of a locally owned and run enterprise, driven by a small business owner, with branding, economies of scale and support from the wider network, gives the consumer the best of both worlds and the business a far better chance of success.
This robust business model, fuelled by dedicated individuals, encompassing many different skills and backgrounds, opens up countless opportunities for people looking for a new start.
The question to ask though is which franchise brand is suitable for you? With hundreds of different brands, investment levels and business types, how can you know what you want? For those looking into franchising, here are just a few simple considerations:
Membership of the bfa: The bfa accredits franchisors using a stringent set of criteria based on a code of business practice and the European Code of Ethics for Franchising. All members are then listed on the bfa’s website at www.thebfa.org to allow potential franchisees to check which brands have chosen to be measured by and have passed these checks.
Investment level: Levels of investment range from smaller amounts, that you may already have available, to larger amounts that you may need to take out a bank loan for. There are three major banks that the bfa accredits as specialists in understanding franchising and providing specific teams to work with franchise business loans.
Lifestyle: Franchising is not a hobby. You will need to make sure that you are happy with the commitments needed for this new business. You will also need to consider the support and understanding of those around you such as your family and friends.
Research: All franchise businesses are different, so do your homework. Speak to existing franchisees, make sure you understand all the business operations and ensure that you fully understand the investment costs.
Professional advice: There are a host of professional advisors accredited by the bfa that specialise in franchising, including consultants, accountants, solicitors, banks and even media. They are invaluable in making sure that you’re taking the right steps and don’t miss any vital information.
Visit the bfa’s website at www.thebfa.org for objective advice and access to numerous educational and advisory resources.
