Are you considering a small business franchise as an option of starting a business? Well I think you have come to right place because this is also something I had to consider a while back. Which means that we have something very much in common.
Here you will find my personal story that combines real facts with genuine experiences to give you a better insight into a franchise business. I will start with the basic questions for those of you who are not familiar with the franchise model; we will then proceed further and cover the Pros and Cons of a small business franchise.
Then towards the end of this page you will have the option to read for yourself my own personal franchise story and use my experience to make up your own mind to find out if a franchise is the best option for you.
So what is a Franchise? A Franchise is a successful established business that is duplicated exactly the same way by the Franchisee (you) in return for a Franchise fee. You get the tried and tested business system for your chosen franchise and all that's left is for you to focus and apply your own hard work, drive and passion.
All the pitfalls should of been eliminated by the franchiser (owner) leaving you with a clear and successful start. There are many types of small business franchises ranging from the typical fast food franchise to pet shops supplies, indeed something for everyone.
A good place to start is whichfranchise.com , also a good magazine called THE FRANCHISE available at any local newsagents is worth browsing through they also have a website which is British Franchise Magazine. You'll be glad to know that some libraries stock it for free so you don't even need to buy a copy.
Finally check out the British Franchise association at (British Franchise Org) all genuine franchises register with the BFA and have chosen to be vetted against a strict code of business so definitely a must if you are serious about franchising.
After purchasing a franchise you will be required by the franchisee to follow their operations manual... "What's that" I here you ask... an operational manual is the way they do things and conduct their business successfully. In other words their success recipe which contains everything that they have done to make the business a success.
It sets out how they would like the franchise operated. What you can do and what you can't do. Basically their operational manual is a tried and tested format that you must follow and stick with to achieve the maximum success for your small business franchise.
After all this is what you are buying into, a business that works without any of the failure. Also be aware that an ongoing franchise fee is payable usually every month this is in the form of a management fee and can go up and down according to your turnover.
Let me clarify these 2 terms below which I found a bit confusing at the start.
Franchiser is the person or company with a successful business system
Franchisee is the person (you) or people that want to replicate the successful business...Got it...Good!
Well I am sure if you've skimmed your eyes over the Pros it's looking quite good....
But it's not that simple as just handing over your hard earned money to the franchiser, in that you just turn up for work and start making money. You have to work very hard as with any business to establish it, but the main key points being that you are provided with a successful business system, brand name awareness (in some cases) and also a solid support network but ultimately you determine your own success.
Ok... let's take a look at the Cons for owning a franchise business
As you can see there are a few points to consider but a small business franchise offers you a solid start into business with a lot of the risk taken out. This will save you time and money with the added support of the franchiser (owner) and other franchisee.
Okay... I've covered the basics here and hopefully in the process given you some food for thought or at least answered some of your questions.
Now I operated a franchise for a couple of years and it was an interesting experience that I would like to share with you. If you still have any questions, please do contact me and I’ll do my best to help you.