According to the most recent survey by the British Franchise Association, more than 700,000 people in the UK work in the franchising industry, with a staggering 93% returning a profit. Consequently, it's no surprise that, when thinking about a career change, many people weigh up the pros and cons of investing in a franchise themselves.
But with so many factors to consider when it comes to joining the franchising industry, how can you be sure that becoming a franchisee is the right decision for you?
We've compiled the top five questions that every would-be franchisee should ask themselves.
Can you afford it?
Whatever type of franchise you find most appealing, investing in it will require you to find enough money to cover both start-up and ongoing costs, with the average cost of buying a franchise in the UK currently standing at approximately £15,000.
Before you begin trading, you'll need to pay an up-front franchise fee to the franchisor for the right to use its brand name, logo and business plan. It also usually covers training, support and marketing.
An ongoing fee will almost certainly be payable too, such as a management or royalty fee to continue trading under the franchisor's brand. This will either be a fixed monthly fee or a percentage of your profits. You may also be expected to make regular contributions for ongoing promotion and marketing activity and, if you're required to sell the franchisor's products, you will also need to buy inventory.
Depending on the nature of the franchise, you may also need enough working capital to pay suppliers, staff, rent, insurance and utilities - as well as your own cost of living - in the interim before your business becomes profitable.
Are you passionate about your chosen franchise?
If you're not 100% interested in the industry in which your chosen franchise specialises, walk away. Not only will your customers and clients quickly pick up on your lack of enthusiasm, resulting in reputational damage to your business, but you're also more likely to lose interest in it in the long-term, which could conceivably cost you a significant amount of money.
Conversely, if you invest in a franchise you're truly interested in, your energy and passion for it will naturally come through, resulting in you offering a better product or service to your customers.
While the predicted earnings and the work/life balance being offered by your chosen franchise are important factors to take into account, if they're the only things that interest you about it, it's time to think again.
Have you done your due diligence?
The only way to ascertain your new business' chances of success is to get out in the area in which you want to operate and do some market research. Does the local community have the right demographics for your business? Is it crying out for whatever you have to offer? Or are there already too many businesses offering the same services in the area?
At this stage, being thorough and patient is vital, so resist the temptation to sign on the dotted line until you can answer these questions and more. The more time you invest before you buy a franchise, the better your return on investment is likely to be.
Do you have the right skill set?
Familiarise yourself with what day-to-day life as a franchisee in your chosen field entails and make sure you're confident you have the personality, lifestyle and skills to make a success of it if you decide to take the plunge.
Ask yourself questions like:
can you deal with early starts and long days?
Do you enjoy interacting with members of the public?
Are you well organised?
Can you handle any and all daily paperwork that may be involved?
Will you be comfortable implementing the franchisor's procedures?
If you can honestly answer 'yes' to these sorts of questions, franchising could be a good fit for you.
How will you spread the word about your new franchise?
You'll need to advertise your new business before it launches - to build interest - and once it has launched, to ensure people know that you're there and what you have to offer.
Establishing a social media presence on Facebook, Twitter and Instagram are all advisable and you should also be prepared to put up posters, make and deliver flyers and advertise in local newspapers in order to promote your franchise too, especially if it isn't already a household name.
Cafe2U franchises are available
Not only are they available, they're one of the best franchise options for 2023. In addition to a top-of-the-range electric van and an exclusive area in which to operate, all our new franchisees receive all the training and equipment necessary to get their businesses off the ground. We also supply them with all the ongoing support and marketing advice they need too.
If you're interested in investing in a Cafe2U franchise, we can even assist in arranging finance for you. For more information, click here.
