Many people believe that the world of franchising is a relatively new concept. However, it has actually been in existence for well over 55 years. It continues to be one of the most popular and affluent investments that an entrepreneur can make. Becoming a franchisee can fulfil all the dreams of a want-to-be business owner whilst also giving the security of being backed by a national brand.
We are surrounded by franchised national brands that operate on a local basis, companies like: Subway (food outlet), ActionCoach (business coaching), Driving Miss Daisy (driving instructors), Molly Maid (domestic cleaning), Auditel (procurement), MinuteMan Press (printing), Anytime Fitness (fitness club), Snap-On Tools (high end tools) and many more. There are probably at least 3 franchise opportunities in every industry sector of all shapes, sizes and types – plenty for a want-to-be business owner to choose from.
Once you have found the right franchise, the next process is to look at the associated costs. There will be an initial franchise fee which helps to cover start-up costs such as marketing tools, equipment, training and onboarding. After that you need to look at any ongoing costs such as royalties of commission payments – make sure you fully understand what you will be responsible for.
There is no timescale for how short or how long you can run the franchise for. However, it is advisable that you personally have a timeframe in mind, without needing to make the franchisor aware of this. Just have full visibility of what your return on investment (ROI) needs to be in 1-year, 3 years and 5-years. Also, have an end goal in place for your business.
The best advice you can be given is make sure that you are fully aware of everything you are committing to before signing up to become a franchisee. Take expert advice and speak to other franchisees about their experience. You are making a long-term commitment; a franchisor is not looking for somebody who is only looking for a short-term deal. Make sure you are fully aware of the small print and note any financial implications for early exit.
Franchising will continue to grow, especially as more and more businesses and entrepreneurs continue to recognise its broad benefits. If you are looking for a safe and secure method of becoming your own boss, then we highly recommend you become a franchisee.
Here at NGI Franchise Funding, we helping franchisees raise finance and assist with developing lender-friendly business plans. If you have any questions about any area of franchising, then our team would be happy to help. Please free to call us on 01993 706403 or e-mail hello@ngifranchisefunding.co.uk.