What is a franchise?
Franchising is essentially the practice of using another firm’s successful business model. So rather than setting up your own business and building up good will, you can for a price, buy a ready made version. Household names which are franchises include McDonalds, Subway and Boots Opticians.
What makes a good franchise?
There are lots of different franchises out there, covering a wide range of industries, so how do you know which is the right one for you?
Firstly, it goes without saying that it has to make a sufficient profit. Franchisors may exaggerate likely earnings therefore ask for evidence of what other franchisees have earned in the past.
Also, the qualities of the franchisor is important, they should be established and provide good initial and ongoing training. They should also be approachable and give help if needed.
Lastly, a brilliant product or service is vital and it needs to have a demand for it in the area that you’d like to open the business.
How do you get a franchise?
You will need to enter into a legally binding agreement with the franchisor. Franchise agreements vary and even though the terms often cannot be negotiated, it is important that you as a franchisee understand what your rights and obligations are.
Other legal issues
As well as the franchise agreement, it is important to get legal advice which covers things such as commercial property, health and safety, contracts with suppliers and employees.Request a Callback
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