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