Do you want to run your own business? One where you
wouldn't have to promote your own brand, a business that's well known,
a name that's recognised by the consumer? If you've answered yes, then
a Franchise opportunity may be right up your street!
What is a Franchise?
A franchise offers an individual the opportunity to
own a business, be it goods or services, under the trademark of an existing
enterprise. There are several types of franchises but the most popular
set up is the Business Format Franchise. The agreement is that the Franchisor
(the business) gives consent and licence to the Franchisee (you) to
trade under their brand and sell their products or services to the general
public.
Owning a company that is already well-known will give your business
a head start over creating and marketing your own brand, thus improving
your chances of success. Examples of Franchises are McDonalds Restaurants,
Merry Maids, Active Web Design and Seo, Pizza Hut Delivery, The Wedding
Guide, but to name a few. A franchisor will give you help and support
in running your business.
Is it suitable for me?
A franchise is suitable for anyone who wants to run
their own business on a secure ground provided by the franchisor, or
for anyone who is keen to work for themselves but hasn't got a clear
cut idea of what type of business they'd like to own. If you decide
to buy a franchise do bear in mind that you will have to stick to terms
and conditions stipulated by the franchisor. So, make sure that you
are fully aware of their terms, sales policies and marketing structure
before you commit as you will be required to run things 'their way'.
If you're not keen on being told how to run your business, or are keen
on introducing new ideas and products to your business, then buying
a franchise is not for you.
Do I need any skills?
In short, yes. Depending on what field decide to venture
in, certain skills will be required to run the business successfully.
In all cases sales and management skills are a pre-requisite of running
any business.
What costs are involved?
Costs include a basic one-off upfront fee, a percentage
of your profits, and a management fee, which is usually based on a percentage
of your gross revenue. However, each franchisor stipulates their own
costs so you may find that fees may vary depending on the industry and
nature of the business. In short, buying a franchise is expensive and
needs lots of research, contemplation and business acumen.
How will the franchise work?
As with any business, you will have to work hard to make your franchise
work. All the franchisor will give you is the brand name and some training,
after that it is up to you to sell the product or service and put in
the hours required, which will often be long. Running your own business
can be stressful, so think about how well you work/cope under pressure
before moving forward with a franchise scheme.
Home Based Franchise
Because of the nature of this site we are going to focus on buying an
Online Franchise that you can run from home. There are many home based
franchises that you can buy and operate from the comfort of your home.
They can be suitable for couples to run as a team, or for men or women
to run independently - options include: Travel Business, Call Centre,
Financial Management, Recruitment, Clothing Alterations Business, Domestic
Cleaning, Children's Entertainment, Car Valet, Printing Company, Dog
Walking, Website Consultancy and more. Buying an Internet Based franchise
costs from as little as £90.00 and up to £20,000 and more.
We will be adding more information on specific home based franchises
in the near future. Meanwhile, if you are interested in finding out
more you can do an online search using any of the major search engines.
In all instances do request further information before making any legal
commitment.
Where can I find out more?
When choosing a franchise ensure be sensible and cautious, make sure
you thoroughly research the franchise before you commit. Your first
port of call should be The British Franchise Association. Find out if
the franchise you are interested in buying is a member of the BFA. This
organisation started in 1977 and is the only voluntary self-governing
body for franchising. All members are self elected for vetting and verification
against the strict code of business practice.
The BFA have three membership levels:
1. Full Membership - Established franchisors with a proven trading and
franchising record.
2. Associate Membership - Associate Members are franchisors working
their way towards Full Membership
3. Provisional Listing - Companies new to franchising can join a Provisional
List.
The aim of the BFA is to maintain good franchise
practice by verifying franchisors who meet their specific standards.
If the franchise that you are interested in is a member of the BFA you
can rest assured that they have undergone required screening. You can
find out more at The
British Franchise Association
SUMMARY
Pros
You are buying a business that has been tried
and tested
Franchisors promote their brand, which will benefit you
You have ongoing support and training from franchisor
Statistically, franchises are less likely to
fail compared to new businesses.
Be your own boss
Work from home
Create your own working hours
Save money and time commuting
Cons
Buying a franchise can be expensive
You will have to share some of your revenue with the franchisor and
pay a management fee
You may have to buy products from the franchisor
Restrictions from franchisor on how to run your business
Running your business on the franchisors terms and conditions
If you decide to sell your franchise business you can only sell to a
buyer approved by the franchisor, which may prove a problem
Other franchisees may lower the brand name of the franchise
