| Buying a Franchise offers many benefits over starting | | | | model works and it would be suitable for them. This |
| a business on your own. The franchisees benefit from | | | | course of action will reveal information that the |
| the training and ongoing support that they receive | | | | franchisor does not usually have in his marketing |
| whilst trying to make their business successful. People | | | | material! |
| starting a business on their own often have no help or | | | | The territory is just as important as the franchise |
| guidance in the day to day running of the business! | | | | model. Not all franchises work in all territories as each |
| The franchisees receive guidance on location, fixtures | | | | area has their demographics and buying patterns. |
| and fittings, marketing and operation of the business | | | | Decent knowledge of the local area is invaluable and |
| model. This guidance is based on years of experience | | | | the choice of which type of franchise business to buy |
| the franchisor has gained not only from running the | | | | should be made with regards to this information. |
| business model but also from advising other | | | | The franchise agreement is the cornerstone of every |
| franchisees. | | | | franchise and as such should be scrutinised carefully. |
| Buying a franchise business is at least a five year | | | | Many franchisees wrongly make the assumption that |
| commitment and as such should not be taken lightly. It | | | | they have to accept the franchise agreement in its |
| is important to make the right lifestyle choice rather | | | | entirety if they are to buy a franchise business. |
| than basing the decision to buy purely on profitability of | | | | In reality a letter of variation can be created fairly |
| the business model. | | | | easily which deals with the individual requirements of |
| A prospective franchisee should always look at the | | | | the prospective franchisees without changing the |
| market trends to ascertain whether the need and | | | | actual franchise agreement. The way this works is |
| requirements of the products of the franchise | | | | that the letter of variation can say that certain clauses |
| opportunity are predicted to grow or decline over the | | | | in the franchise agreement do not apply in this case |
| medium and long term. Getting advice from an | | | | and certain clauses are to be treated differently. |
| experienced accountant can help in this respect. | | | | It is important when seeking advice that experienced |
| What makes the franchisor's products better than the | | | | lawyers and accountants are used rather then |
| competition? Is the franchisor continually investing in | | | | choosing somebody who has just qualified. They will |
| improving the products to reflect changes in latest | | | | know through dealing with real cases how to handle |
| trends and requirements of the customers? Analysing | | | | the franchisee's particular requirements and still keep |
| which products have been changed and new ones | | | | the franchisor happy. |
| introduced over the last five years will help in this | | | | Making the right choice of franchise that is based on |
| regard. | | | | individual skills as well as the individual requirements of |
| How are the other franchisees faring? Prospective | | | | each particular territory should serve to ensure that the |
| franchisees should speak to others who have already | | | | business model works both in the short term and the |
| bought the franchise to ascertain whether the business | | | | long term. |