Rebecca Newenham, a seasoned entrepreneur and franchise consultant, reveals the secrets to convincing a franchisor you are the right choice for their business.
If you are thinking about buying a franchise in 2025, congratulations! Franchising enables you to run your own business with the support of an established brand behind you. Statistics show franchisees are much more likely to succeed than those who start independent businesses. Franchising can offer an excellent work-life balance, putting you in control of your own destiny.
Once you have decided on the franchise you want to buy, you need to convince the franchisor you have the attributes they want in a franchise partner. This is a critical but sometimes overlooked step.
As a franchisee, you are the one ‘buying’ the franchise. However, buying a franchise is not like buying a tin of beans in the supermarket. You don’t have 100% control over the decision. The franchisor must decide if they want to award you a franchise or not. It’s their business that they have invested significant amounts of time, effort and money to get to this point. They need to believe that you are right for them, just as much as you need to decide it’s right for you. Consider it more as entering into a partnership, where both sides must be as committed to your joint success.
There are several things you can do to boost your credibility with a potential franchisor:
Do your homework
This refers to both franchising as a whole and the particular franchise you want to buy. Do you understand how franchising works? Have you run one before? If not, have you got your head around what you can and can’t expect from a franchisor? Running a franchise can give you immense freedom, but there are also restrictions. You need to convince a franchisor that you understand how running a franchise differs from being employed or starting your own business and that you embrace the benefits and limitations.
When it comes to the franchise you want to buy, spend time understanding its history and its strengths and weaknesses. Imagine you are already on day one of your franchise – what do the first six months look like? What will be the first tasks you need to address? Taking this proactive approach demonstrates you care about the business you are buying into and are prepared to put in the effort it will take.
Investigate competitors
Many franchises operate in competitive markets. For example, if you are considering buying a care franchise, many options are available. Investigating each one thoroughly is crucial for completing your due diligence and seeing which one feels right for you. But this also demonstrates to a franchisor that you have invested time in understanding the different options and the companies you will need to compete with should you be successful.
Think outside of the box beyond just direct competitors. Are there bigger economic or social trends that might affect the franchise? For example, with more people required to return to offices to work, is there likely to be a rise in demand for dog walking or home-cleaning services? Indirect competitors can have just as much of an impact on your business. To succeed, you must fully understand your franchise’s internal strengths and weaknesses as well as the external opportunities and threats.
Be in a financial position to take the franchise on and be prepared to demonstrate it
People can feel uncomfortable talking about money, but investing in a franchise requires capital. Be open and honest with a potential franchisor. Show them you understand the costs involved and have identified and agreed on how you will fund it.
Don’t just think about the upfront franchise fee – you may also need to supplement your own income or have access to cash to keep the business going as it gets established. Companies often fail because they run out of cash. Demonstrate you have the financial understanding and the assets in place to ensure it doesn’t happen to you.
Present yourself professionally
A franchisor needs to learn to trust you, so every detail of every interaction you have with them counts. From avoiding typos in emails to a friendly smile on the phone (yes, smiling does make a difference even if they can’t see you) to following up swiftly on any action or completing your LinkedIn profile, you can make a great impression or be the author of your own downfall.
It pays to invest time upfront before even contacting a franchisor to update any social media accounts or websites you might have. Think about how you will communicate with a potential franchisor from the first moment to create the right impression and set your relationship on a path to success.
If you have more questions about buying a franchise and convincing a franchisor you are the one for them, come along and meet the Ashtons Franchise Consulting team at The British and International Franchise Exhibition on 31st January & 1st February 2025 at Olympia in London. Our franchising experts will be on stand J90 and happy to help anyone interested in franchising.
