The pros and cons of entering into the world of franchising

Cathryn Hayes provides a frank assessment of what it takes to succeed as a franchisee.

The pros and cons of entering into the world of franchising

Cathryn Hayes provides a frank assessment of what it takes to succeed as a franchisee.

After a period of uncertainty, first with Brexit and latterly because of Covid-19 and the subsequent Government lockdown, lots of business-minded people are showing an interest in franchising.

The UK has just gone into recession which will drive further job losses and uncertainty. However, great opportunities can sometimes come from challenges and adversity, so this could be the ideal time to look at making changes and deciding on your future. 

Franchising can be a great way to get into business, because of the support and structure that a good franchise offers. However, it is important to choose the right one and it is not a decision to be taken lightly. It requires plenty of thought and research, and there are lots of considerations to take into account.

Franchising really does cover a huge range of business sectors and investment costs. You can be home based or have premises, or become involved in retail, children’s activities, gyms and fitness, as well as an array of van-based opportunities.

A good franchise should provide a structure of training, support and know-how, which should really increase your chances of success, But whether you end up achieving your goals will depend on your ambitions, skills, drive and commitment, as much as anything else.

If you are hugely independent and dislike being told what to do or do not want any contractual constraints put on your new business venture, then franchising is unlikely to work for you. 

Franchisors are taking a risk on you, trusting you to represent their brand in your local area. In return, you will have to follow the ‘rules’ by working within the franchise structure and brand guidelines. You will have limited autonomy to make changes and that can lead to frustration, especially if you have a strong, entrepreneurial streak.

Conversely, if what you are really looking for is a job, with a regular salary and ‘normal’ hours, and little risk, allowing you to simply sit back and watch your business grow without too much effort, then franchising is almost definitely not for you. 

Being a business owner, whether you are a franchisee or an independent, is always going to involve hard work and lots of commitment, especially if you want to be a success.

Before you start looking in more detail at the franchises on offer, you should spend plenty of time assessing your own skills and ambitions. What do you enjoy doing and what parts of your current business life, or job, do you dislike? Is there something you are passionate about, which can be incorporated into your new business venture? Do you want to have a business that you can run from home? Will you be confident selling your services? How do you feel about recruiting and managing staff? Always look realistically at the investment level you can afford. How much money do you have available to put into this new idea?

It is worth looking at things in a slightly different way, by putting your own skills and ambitions under the spotlight before you start assessing the franchises available. You will need to do plenty of detailed research on franchisors who must also do the same on prospective franchisees. They must decide whether you are right for them, just as much as them being the best choice for you.

Be brutally honest with yourself about your priorities, your attitude to risk, and even about your energy and stamina, as running a business is not an easy option. Examine your mindset and challenge some of your own thoughts before you start talking to franchisors. 

A franchisor will normally ask you about some of these issues during their vetting process, so it will really help your cause if you have taken the time to think about these fundamental issues first.

There is plenty of help and advice available and one of the best places to start is the franchise sector’s standards body, the British Franchise Association (BFA). The BFA have developed a great resource for those considering franchising. So take the time to undergo their free training course, called the Prospective Franchisee Certificate. You can work through this at your own pace and it should help you consider some of the aspects you might not have thought about. Visit https:/bfa.trainme.tv/ for more information.

Becoming a successful franchisee, and building a business, will not be handed to you on a plate. But it could be your route to a more fulfilling lifestyle, as well as business success.

There are lots of factors involved and franchising can undoubtedly help and support you. However, the route to your new life has to start with you, so be clear about what you really want. Make certain you recognise your own strengths and weaknesses, in order to give yourself the best possible chance of making your chosen franchise a success.

ABOUT THE AUTHOR
Cathryn Hayes
Cathryn Hayes
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