What to know about Franchise Consultants
By purchasing a franchise you can establish your own business whilst benefiting from the use of an established brand, products and business systems to reduce some of the risks associated with establishing a new business, though it is still a major investment. A franchise consultant can assist you in selecting a suitable opportunity.
The UK franchise sector is large and varied. According to Franchise Local, There are now almost double the number of franchises available in the UK than there were 20 years ago. With around 935 opportunities and an estimated £17.2 billion contribution to the economy, it is vital to do your research before embarking on any franchise journey.
What a franchise consultant does
As franchising can be complex a specialist called a franchise consultant can assist you with your decision to purchase a franchise or franchise your own business.
- Help you narrow down opportunities that suit your skills, goals and budget.
- Explain how the franchise model and fees work.
- Help you understand the key terms of a franchise agreement.
- Act as a sounding board as you make decisions.
A consultant may charge either a fixed fee or an hourly rate. It’s also worth asking whether they are paid by a franchisor to recruit franchisees and whether their advice is independent.
Questions to ask before buying a franchise
| Question | Why it matters |
|---|---|
| What are the upfront and ongoing fees? | Royalties and marketing levies affect profits |
| What training and support is provided? | Good support is a key reason to franchise |
| Can I speak to existing franchisees? | They give the most honest picture |
| How long is the agreement, and what happens at the end? | Affects renewal and resale |
| Is my territory protected? | Avoids competition from the same brand |
It is also sensible to get the franchise agreement reviewed by a solicitor who has experience of agreements of this nature and to seek the advice of an accountant with respect to the financial projections.
Franchising your own business
Consultants also help established businesses that want to grow by offering franchises. That involves proving the model works, documenting systems in an operations manual, setting fees and drawing up agreements. Consultants such as www.ashtonsfranchise.com/franchise-my-business/ can answer all questions relating to franchise my business ideas, offering prescriptive advice that is in alignment with your best interests at all times.
Frequently asked questions
Is a franchise less risky than starting a business?
While there are many positive factors associated with using a proven model and brand name, success will ultimately depend upon the individual’s efforts, the chosen location, the market in which they are trading and the quality of the franchisor. It’s wise to do plenty of research and speak to current and past franchisees.
How do I check a franchisor is reputable?
Examine the history of the franchisor, speak to several current and former franchisees, review their financial information and check if the franchisor is a member of the British Franchise Association (BFA). The BFA has standards for membership and a code of ethics for its members.
Where to go next
Running any business means managing money well. Read why cash flow is the lifeblood of a business.
