Factors to Consider When Buying a Franchise
http://www.if1u.com/articles/62644/1/Factors-to-Consider-When-Buying-a-Franchise/Page1.html
Matthew Franchise Anderson
Matthew Anderson is a franchise consultant and founder of The Franchise Shop, a UK business franchise directory featuring everything from Van Franchises through to Internet Franchises and Dating Franchises By Matthew Franchise Anderson
Published on 06/2/2009
when buying a franchise there are several factors you need to take into consideration before going ahead with your purchase To ensure that the franchise is not only suited to you, your interests and your experiences and to ensure that the franchise is a viable opportunity capable of living up to the promises stated in the promotional materials and the franchise interview process
when buying a franchise there are several factors you need to take into consideration before going ahead with your purchase. To ensure that the franchise is not only suited to you, your interests and your experiences and to ensure that the franchise is a viable opportunity capable of living up to the promises stated in the promotional materials and the franchise interview process.
Factors to take into consideration
Firstly you want to ensure that the franchise you are looking to buy into is one which you are capable of running. There is no pint starting up a franchise which relies on sales if you have no sales experience. This is not strictly speaking true as new skills can be learned but you will have a head start if you are already comfortable with the franchise industry you are buying into.
Secondly, when buying a franchise you need to ensure that it is a reputable offering and that you are now just being swung by promises of 5,000 pounds per month within the first year. In most cases you are not going to make a profit till year 2 and even then not going to start earning a good living until year 3, this is how long it takes to get a good client base and reputation. i know from my own business that year 1 was losses, year 2 was small profit and year 3 was substantial profits. It's just the way it works, so be wary when a franchisor promises big profit margins in year one.
You need to be doing a lot of research into the franchise you are buying, from interviewing existing franchisees to looking over profit/loss forecasts and also getting a solicitor involved to look over the franchise agreement to ensure there are no hidden nasties.
Once you feel you have done all the right research you are in the position of buying a franchise with confidence and are not goin to look back at it in 2 years and regret not doing the correct research.
many franchises costs tens of thousands of pounds and this is no small amount of money so before buying a franchise you want to be sure you investment, heard earned cash and life savings is going to be going on something concrete. many franchisors of course already have huge brands and with these you can be confident that they are going to do just what they say in their promotional materials however there are also many hundreds of smaller franchises and although the majority are great opportunities, quite simple, some are not and are out to get your franchise fee by dubious marketing and dubious earnings claims.
I would say good luck on buying a franchise but luck does not come into it. Research and good judgement does! If you are relying on luck and going in blind then you will join that long list of people before you that have lost their life savings due to the lack of proper research, be warned and be safe.
Factors to take into consideration
Firstly you want to ensure that the franchise you are looking to buy into is one which you are capable of running. There is no pint starting up a franchise which relies on sales if you have no sales experience. This is not strictly speaking true as new skills can be learned but you will have a head start if you are already comfortable with the franchise industry you are buying into.
Secondly, when buying a franchise you need to ensure that it is a reputable offering and that you are now just being swung by promises of 5,000 pounds per month within the first year. In most cases you are not going to make a profit till year 2 and even then not going to start earning a good living until year 3, this is how long it takes to get a good client base and reputation. i know from my own business that year 1 was losses, year 2 was small profit and year 3 was substantial profits. It's just the way it works, so be wary when a franchisor promises big profit margins in year one.
You need to be doing a lot of research into the franchise you are buying, from interviewing existing franchisees to looking over profit/loss forecasts and also getting a solicitor involved to look over the franchise agreement to ensure there are no hidden nasties.
Once you feel you have done all the right research you are in the position of buying a franchise with confidence and are not goin to look back at it in 2 years and regret not doing the correct research.
many franchises costs tens of thousands of pounds and this is no small amount of money so before buying a franchise you want to be sure you investment, heard earned cash and life savings is going to be going on something concrete. many franchisors of course already have huge brands and with these you can be confident that they are going to do just what they say in their promotional materials however there are also many hundreds of smaller franchises and although the majority are great opportunities, quite simple, some are not and are out to get your franchise fee by dubious marketing and dubious earnings claims.
I would say good luck on buying a franchise but luck does not come into it. Research and good judgement does! If you are relying on luck and going in blind then you will join that long list of people before you that have lost their life savings due to the lack of proper research, be warned and be safe.