How to Identify the Right Franchise Brand for You

How to Identify the Right Franchise Brand for YouWhen looking to buy a franchise, it’s important to properly educate yourself about every aspect of the business so that you can feel certain you’re entering into a brand that is both appropriate for you and reputable. This task can seem daunting when facing 100’s if not 1000’s of franchise options, and without enough information it can be all-to-easy to end up with a raw deal. However, with the right strategy and preparation, you can make informed decisions that will benefit you and your business today and down the line. Here are some tips on how to identify the right franchise opportunity for you.

 

Getting started

Before you even begin looking at what’s out there, educate yourself about the current landscape of franchising from a credible source, such as the British Franchise Association (BFA.) Whether you’re new to the concept or just need updates on recent legal changes and industry trends, BFA offers seminars and educational tools that can give you in-depth information, insights, and industry knowledge to help you make your decisions.

 

Speaking to prospects

An ethical franchisor should have no problem being transparent with you about the development of their business and the challenges they have both overcome and currently face. It’s perfectly normal for a franchisor to ask you to sign a confidentiality agreement first to protect crucial information about the company, and you should feel free (and encouraged) to get a legal advisor to evaluate the agreement before signing.

Things to look out for:

  1. Anyone telling you that their franchise is perfect, and they have made no mistakes
  2. Anyone telling you they can make you rich overnight

A few questions to keep in mind:

  1. How long have you been in franchising?
  2. How many franchised businesses are you running at the moment?
  3. What costs are associated with the franchise, including both opportunity cost and additional capital costs incurred by the franchisees?
  4. What’s included in the cost, and what kind of costs are franchisees expected to incur?
  5. What does their training and development program look like?
  6. How many franchisees have failed and why?
  7. How many franchises have opened in the past 12 months?
  8. What systems do you have for keeping franchisees in touch with you and each other?

 

Speaking to franchisees

In addition to speaking to franchisors, you should speak directly to the franchisees of the brand, as they can verify what the franchisor has told you as well as give you a better picture of the day-to-day experience of an individual location.

The franchisor should provide you with a complete list of all their franchisees and allow you to choose which ones you want to speak to. If they don’t, this could be a red flag.

When choosing who to speak with, aim for as wide a variety as possible to get a more complete picture. Choose both top and bottom performers. Choose some who have just started and some who have been with the franchise for a long time. To understand the full cycle of how the business is run, you need to look into performance at every point.

A few questions to keep in mind:

  1. Why did you choose this franchise?
  2. What support did you receive when you first got started?
  3. Have you received continued support? How so?
  4. How involved is the franchisor at this point? Does he/she visit often?
  5. Did the outcome of your business meet the expectations that were set for you when you initially got involved?
  6. If you had the chance, would you do it all over again?

If the franchisor and franchisee agree to it, you may also want to shadow a franchisee for a day to see the business in action for yourself.

 

Get some expert advice

There are many financial and legal aspects that you’ll need an expert for. Projections can be discussed with a dedicated franchise department at one of the several major banks that support franchising. You will also need legal advice from a solicitor who specializes in franchising. If you’re not sure who to look to for help, check for specialists who have been accredited by the BFA.

 

Making the final decision

Once you feel you have a firm grasp of the operational, financial, and legal aspects of the brand, make sure you revisit the most important part of your decision: is it right for you? Something can be a sound business investment and still not be exactly what you’re looking for.

A few questions to keep in mind:

  1. Is the projected outcome of this deal in line with your professional goals?
  2. How does this business fit in with your personal goals?
  3. Does the reality of the business allow you the hours, work-life balance, and flexibility that your personal life requires?

 

Use everything you’ve learned as a resource for your final decision. Once you know you’re prospect is an ethical, reputable brand with a financially bright future, the final call has to ultimately come from how you feel about it.

Advantages of Franchising

UnknownMany entrepreneurs wrestle with the idea of starting a business from scratch, or enlisting the services of a franchise. There are definite advantages from purchasing a franchise and some of them can go well beyond the well known upside. Franchisees are in business for themselves but, of course are not alone as they have the support of their umbrella organizations. As it is well known, sole proprietorships are the most likely businesses to go close their doors in a given time frame. The support and guidance of a franchise significantly reduces those odds of failure. Being associated with a popular or established brand also helps the business owner as they reap benefits of advertising, and pre-exposure to their target market.

Franchising also offers pre-open support by way of a certain number of hours in training services. Depending on the type of franchise you are involved as a franchisee, you are offered a training program which has a certain amount of hours at your disposal in order to pick up the knowledge needed to run a company. Also a common add-on is a grand-opening program to assist owners in building hype for the first day of business. On an ongoing basis, franchises offer continued training for advertising campaigns, and operational consulting.

Such support allows entrepreneurs a framework of reference for all endeavors. It can be equated to having a very knowledgeable mentor throughout your ownership of the business. This type of helping hand can assist in the navigation of the rough waters the business environment can generate, which certainly will arise in your entrepreneurial endeavor. For more information regarding Master Franchise Connections please visit their website, or contact Neil Burnard for more information. For those entrepreneurs looking to become involved in an expense reduction franchise that has a proven track record of success, visit Neil’s ERA site.


To read the original article, please click here.

More on Master Franchising

Being a part of the Master Franchise organization is much like being an Area Developer with the one exception being, Master Franchisors have the right to sell Sub-franchises. Master Franchisors also support subunits in operational matters. The most clear description of a Master Franchisor is that they are a sub-franchisor themselves that are professionally trained and equipped to run a franchising system.

Companies Master Franchise Connections have serviced.

Companies Master Franchise Connections have serviced.

Owners will pay a Master fee in order to benefit from the umbrella company’s services. When the Master Franchisor sells the model to its franchisees, a fee is issued that goes directly to the Master Franchisor. This fee is then shared with the Franchisor.

Successful franchisors in our system have varying levels of experience and expertise which assists in being able to cater to a variety of business needs. Currently there are many different business partner opportunities across the world with a focus on developing markets like China, Indonesia, India, and the Middle East. Being nearly two decades old, MFC has been operating in over 30 countries, with 750 consultants across the US, Europe, Australia, North and South America. Franchisees have helped service some big name companies the likes of , Pioneer, Siemens, Polaroid, and Unilever.

Why Master Franchising?

When it comes to starting a business an owner operator’s face numerous challenges. They may have a business idea but that idea is not proven and the risk of failure is high.
Today’s economy has led to a growing number of people wanting to own their own businesses. In many cases, these people seek out franchise opportunities. These opportunities offer the ability to expand an already successful company with a proven business model. While some people want to own their own brick and mortar business, others are interested in managing a specific geographic territory, leading them to look into master franchise opportunities.

Defining Master Franchising

Having a good understanding of master franchise opportunities will aid you in deciding whether you want to pursue a master license, or a standard business opportunity. A master license enables a person or company to control the business opportunities for a specific geographical territory. Instead of purchasing a standard business and running their own store, a person or company purchases the rights to sell specific business opportunities to people looking to run their own brick and mortar store in their specific territory. Most people with a master license do not own or operate their own stores. While some companies offer master license opportunities, others do not. Researching your chosen company will help you to determine if this company is right for you.

Researching Different Opportunities

Taking the time to research the business opportunities of your chosen company is extremely important. When making your decision, research the company, its policies, and business models. Researching the company will determine whether you will be able to achieve your goals. If, after your research, your chosen company does not provide the means to achieve your goals, then take the time to research another company or different business opportunities. Speaking with other successful master franchisees will give you an idea of the challenges that you may face as well as what you may need to do to be successful.