Buying A Franchise Opportunity Getting It Right

Buying A Franchise Opportunity Getting It Right

Buying a​ Franchise offers many benefits over starting a​ business on your own. The franchisees benefit from the training and ongoing support that they receive whilst trying to​ make their business successful. People starting a​ business on their own often have no help or​ guidance in​ the day to​ day running of​ the business!

The franchisees receive guidance on location, fixtures and fittings, marketing and operation of​ the business model. This guidance is​ based on years of​ experience the franchisor has gained not only from running the business model but also from advising other franchisees.

Buying a​ franchise business is​ at​ least a​ five year commitment and as​ such should not be taken lightly. it​ is​ important to​ make the right lifestyle choice rather than basing the decision to​ buy purely on profitability of​ the business model.

A prospective franchisee should always look at​ the market trends to​ ascertain whether the need and requirements of​ the products of​ the franchise opportunity are predicted to​ grow or​ decline over the medium and long term. Getting advice from an​ experienced accountant can help in​ this respect.

What makes the franchisor's products better than the competition? is​ the franchisor continually investing in​ improving the products to​ reflect changes in​ latest trends and requirements of​ the customers? Analysing which products have been changed and new ones introduced over the last five years will help in​ this regard.

How are the other franchisees faring? Prospective franchisees should speak to​ others who have already bought the franchise to​ ascertain whether the business model works and it​ would be suitable for them. This course of​ action will reveal information that the franchisor does not usually have in​ his marketing material!

The territory is​ just as​ important as​ the franchise model. Not all franchises work in​ all territories as​ each area has their demographics and buying patterns. Decent knowledge of​ the local area is​ invaluable and the choice of​ which type of​ franchise business to​ buy should be made with regards to​ this information.

The franchise agreement is​ the cornerstone of​ every franchise and as​ such should be scrutinised carefully. Many franchisees wrongly make the assumption that they have to​ accept the franchise agreement in​ its entirety if​ they are to​ buy a​ franchise business.

In reality a​ letter of​ variation can be created fairly easily which deals with the individual requirements of​ the prospective franchisees without changing the actual franchise agreement. The way this works is​ that the letter of​ variation can say that certain clauses in​ the franchise agreement do not apply in​ this case and certain clauses are to​ be treated differently.

It is​ important when seeking advice that experienced lawyers and accountants are used rather then choosing somebody who has just qualified. They will know through dealing with real cases how to​ handle the franchisee's particular requirements and still keep the franchisor happy.

Making the right choice of​ franchise that is​ based on individual skills as​ well as​ the individual requirements of​ each particular territory should serve to​ ensure that the business model works both in​ the short term and the long term.

Buying A Franchise Opportunity Getting It Right

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