Guide to Buying A Franchise

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Guide to Buying A Franchise

What is Franchising?

You want to be your own boss running your own business, but are not sure where to start, what resources you need, how to market products and services, how to hire and train employees etc. Don’t despair – a franchise opportunity could the right choice for you.

Why invest in a franchise?

There are many advantages in choosing a franchise business model over an independent business. First of all the success rate for franchises is 90%, beacuse you receive the benefits of operating a business model that has been tried and tested to work, on-going support, marketing support, expert training and much more...

How Franchising Works

The partners in a franchise agreement are the franchisor, who grants the franchise license to the franchisee, who invests in it.

The Advantages of Franchising

You could start a business of your own without involving anyone other than your advisers – an accountant, a lawyer and banker. There are many people who want to be their own boss but within the comfort zone of a tried and tested business.

Franchise Success. First, Know Yourself!

To succeed as franchise owner, you must be able to follow the rules, and conduct the business according to the book, in this case, the Operations Manual.

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Finding and Assessing Franchise Opportunities

Franchises exist just about everywhere, and offer many choices. With so many options, it can be hard to narrow your options to a short list of possibilities. The Internet is a good place to start your research.

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The Universal Franchise Offering Circular (UFOC)

After doing some research, and identifying a few franchisors with good reputations that match your criteria for industry and lifestyle preferences, and investment level, you’re ready to make contact. This is where you enter the legal realm of contracts and paperwork.

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Assessing the Business Proposition

After careful review of the UFOC, you should be able to evaluate the business proposition, and whether or not the franchise will help you meet your financial and future goals. There are several major areas you must consider in deciding if the business proposition is the right one for you. One very direct way is to talk to other franchisees about their experience running the business and dealing with the franchisor.

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The Franchise Agreement

You and your lawyer have examined the UFOC; you’ve done your research about the franchise, and the numbers add up. You’ve spoken with other franchisees in the business, and like what you’ve heard. You feel ready to sign the Franchise Agreement.

Franchise Funding and the Business Plan

The UFOC should include a chart and information about estimated start-up costs for your individual franchise so you have a good idea about the costs before you sign the Franchise Agreement.

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Finding the Right Franchise Location

What they say about real estate also applies to franchises: Location, location, location! If your business is not sited in a place that will draw customers, your business cannot succeed.

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Home-Based Franchises

Though most people think of franchises in terms of stores and restaurants, but there are plenty of home-based opportunities available too, such as computer consulting, pet care, financial services, cleaning etc. Some may require specialized equipment, like a van with the company logo.

Expansion Opportunities in Franchising

The franchising industry has undergone many changes since the concept took off fifty years ago, and one of the biggest changes is the opportunity for multi-unit ownership. This is where the franchisor grants a franchisee the right to operate more than one outlet within a defined location.

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