FAQ about Franchising

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FAQ about Franchising

Franchise re-sales -- when a franchisee decides to sell the business

As many more franchise companies are becoming established, franchise resales are now common in the industry. This is where a franchisee sells an existing franchise to someone who will take it over and if the process is managed correctly, both buyer and seller stand to benefit.

Building a good franchise partnership

Most franchisers and franchisees will start off feeling confident about their prospects for the franchise set up between them in a particular area, but the good relationship needs to be kept in order for a franchise to be successful.

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What franchisors want from franchisees

When franchisers meet with potential franchisees, they will be looking for certain personal characteristics to judge whether they would be suitable to run a franchise or not. It is very important that people wanting to be franchisees have enthusiasm for the company and are confident that they can help to continue its successful expansion. Therefore, a good understanding of what the franchiser does and how it operates is essential.

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Franchise Trade Shows and Expos in 2008

A list of upcoming franchise shows and expos where entrepreneurs can meet franchisors from 100’s of top franchise concepts. Franchise Expos allow potential franchisees to explore business opportunities covering a range of franchise industries.

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Franchising for the family

Business format franchising lends itself well to families wanting to go into business together, although they must all be pulling in the same direction and be competent enough for a family-run franchise to be a success.

Success in franchising

Both franchisers and franchisees need to have a number of aspects in place if they are to achieve their goals. Companies looking to branch out into franchising must ensure that they have a strong team in place with some of them having had experience in the franchising industry.

Franchise funding

Potential franchisees need to make sure they have their finances in order before they can go ahead with a franchise purchase. Like any other business start-up, they need to have a solid business plan in place to obtain the necessary funding from a bank, although with franchises the bank will take the track record of the franchiser into account as well.

The franchise agreement

The franchise agreement between the franchiser and franchisee is extremely important as it determines the rights and obligations of both parties once the franchise is up and running. Franchisees are advised by the industry to get legal advice to ensure that the agreement is workable and it must clearly detail a number of issues so that the business can run effectively and any difficulties can be quickly resolved one way or the other.

The importance of training in franchising

In order for franchisees to be successful at running their business, they need to go on well-organised and correctly structured training courses. This is a key issue that potential franchisees need to ask the franchiser about before an agreement is signed, although the good news is that over the past ten years, the vast majority of franchisers have put in place a start-up training programme.

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Finding the right location for the Franchise

To run a successful franchise, franchisees need to operate from a location that is affordable, spacious enough and in many cases in an area where a large number of people go every day. Good franchises will provide detailed selection criteria with information covering subjects such as the population of the surrounding area and the age and gender makeup if necessary, how many people visit an a town or city centre or shopping area and the amount of parking available.

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