Buying into a system.
WHAT A FRANCHISEE IS BUYING
A model that works A recognised brand Training and support Reduced risk relative to starting alone
WHAT THEY GIVE UP
Independence A share of revenue Freedom to change things Sometimes, the ability to exit easily
WHAT ATTRACTS PEOPLE
Lower perceived risk Support An established name
WHAT THEY FREQUENTLY UNDERESTIMATE
The capital required The establishment period The extent of the obligations How restrictive the system is That they are buying a job as well as a business
WHY THAT LAST POINT
Most franchises require the owner to work in the business.
WHAT TO ESTABLISH BEFORE BUYING ANY FRANCHISE
Total investment: fee, setup, working capital
Realistic revenue and profit How long to reach profitability What the ongoing fees actually total What support is genuinely provided
HOW TO ESTABLISH SUPPORT REALISTICALLY
Speak to existing franchisees, chosen by you rather than by the franchisor.
WHY CHOSEN BY YOU
Referrals are selected.
WHAT TO ASK THEM
Whether they would do it again What the franchisor does not tell you What the first year was actually like What support they actually receive
WHY THAT SECOND QUESTION
It produces the most useful answers.
WHAT TO VERIFY
The franchisor's own financial position How many franchisees have failed or left Any litigation
WHY FAILURES SPECIFICALLY
They are the most informative figure and the least volunteered.
