Franchising your business

A traditional franchise can set you up  very quickly.

Points to consider about franchising.

One way of setting up in business is by buying a franchise. This is often the preferred route of many people because there is usually a tried and tested formula. The parent company should have a rock solid business plan and many successful agents already making a good living from the business.

The company that owns the franchise is the franchisor and you would become the franchisee.

The franchisor should have their own, in house marketing and distribution in place, if you haven't heard of them before, then that marketing may not be very strong.

Before making any decisions, don't be afraid to contact other operators and ask how well they are doing. Ask about the startup period, the support and always ask whether they wished they had started on their own without the parent company.

Franchising has its fair share of success stories, and many are global, McDonald's, Dunkin Donuts and Seven Eleven all have a great pedigree.

The statistics show that franchising yields a higher success rate than a go it alone operation, but be warned, there are failures too. The chances are that if your franchise fails, you would loose more money proportionally than if a normal business fails. The case is arguable but the best way to avoid failure is to research thoroughly.

Don't be fooled by the hype and razzmatazz at a seminar or convention and never sign up on the day. Try to determine whether the company is in the business of franchising their business, or selling franchises. If a company is only concerned with selling the franchise, drop it.

Always seek advice before taking the plunge, by consulting a lawyer or accountant.

Here are some links to help you along the way:

The British franchise association has a strict code of practice and vets its members thoroughly.

The USA franchise directory has a massive list of franchisor covering all aspects of business.

The Canadian franchise association details trade shows and has its own magazine.

The franchise council of Australia is a non profit organisation, dedicated to franchising.

The franchise association of New Zealand operates a strict code of practice.

Franchise opportunities of Ireland has a directory of many Irish franchises.

Many of the planning and sourcing difficulties, encountered by entrepreneurs can be fast tracked by using the franchising route, just be careful and investigate thoroughly.