Take your time selecting a Franchise
Article by David Williams Q.F.P.
The Royal Bank of Scotland
When choosing a franchise, it is vital that franchisees undertake as much research as possible before making their decision as there are many aspects to investigate, questions to be asked and people to consult.
Before signing any legal agreement or making a financial commitment thorough research is crucial. You must satisfy yourself that your chosen franchise is a proven well-established business with a demonstrated track record of satisfied, successful franchisees. Obtain a full list of the franchisees in the network and speak to as many of them as possible to gauge what they really think about the franchise; the initial training, how are they performing and support they receive from their franchisor. Also visit some franchisees to get a better understanding of the way the business operates at first hand.
This is not as easy with a new franchise, particularly if you are their first. In this instance you must satisfy yourself that the franchise has been piloted and the results provided to you. The franchisor should also have, or used, people with a proven track record in establishing a new franchise. .
Seek appropriate professional advice including a solicitor affiliated to the British Franchise Association; you would not normally buy a house without having a survey, so do not buy a franchise without having the legal agreement checked out.
An assessment of the franchisor’s financial stability should also be undertaken, to ensure that they have the funding to support a growing franchise network.
RBS lends to franchisees through a network of accredited Franchise Managers, who have a detailed understanding of franchising and combine this with the knowledge of the location in which they operate.
The Bank will need to see a business plan which should include details about the franchise, the costs, the sector it operates in and their competition, your CV, your assets and liabilities and financial projections.
The RBS Group do not warrant, endorse or recommend any franchise. The decision as to which franchise to buy is left to individuals who should undertake thorough research into the franchise.
For further information on how RBS can support your franchise aspirations contact 0800 073 0265 (Text Relay 18001 0800 073 0265). Calls may be recorded.
Security may be required. Product fees may apply. Over 18s only
Last Updated: 25-June-2013