From Employment to Franchise – Here’s How You Do It

How much cash do you personally need to carry on with everyday life, you must factor this in now, failure to do so might mean you will put undue pressure on not only yourself, but your family and then of course on the very business itself, and under-funding any business entity will never end well!

Weigh-Up The Pros and Cons Now

A new franchise will be lower cost, quite simply, the franchisor will be looking to recoup the cost of getting you started at your expense, as well as covering their own costs to provide ongoing assistance, they do incur costs, and this is often initially recouped by way of a ‘franchise fee’.

A franchise resale, on the other hand, will be a much higher cost, this is because the current franchisee has started this usually from scratch, spent some time developing the franchise in their given territory, and you can simply pick this up from where they are leaving it, think of this as your way to leap-frog all those early years learning, and costs that come with it! In exchange you will have to expect to pay the previous owner for the benefit of all the goodwill of that learning curve. By the way, this article does not discuss any form of business in distress, that is an article for another day!

How much does the new or existing franchise need to be able to grow? Now you will have to think about advertising and marketing costs, the franchisor will assist you so you can have ideas on where this is best spent to achieve some returns to ensure it is all repeatable and scalable.

How To Find The Right Franchise For You

You might well be in the right place just by reading this article, there are many franchise directories, such as where you have found this article that list many franchise options, so why not see what matches either your investment level or business type, whether you see yourself wanting a part-time or lifestyle franchise or fulltime of course, and quite often you can select these fields as a starting point for these portals to select what they think might be a match for you.

From this you should make your enquiry, and just like when you are in a franchise, the process from here is pretty well systemised by the people you are making your enquiry with, follow the process and you will be in a good hands.

The franchise community is also very friendly, ask anyone for an opinion, I’m sure they will be only too happy to assist!

Can You Do This On Your Own?

Only you know the answer to this question!

The things to consider should include:

Do I have the personality trait to follow a system? Some people do not, this is not all bad by the way, but you might not be best suited in having a franchise. Can I commit for the longer term? There are many franchises that could well be a five or ten year renewable term, does that suit your circumstances? You do not want to enter in a franchise agreement if you think this will simply be something to do whilst you find a job.

Do I have the initial and ongoing funds? There are many businesses out there that are great businesses, they are even profitable, but fail, often they fail because they simply run out of cash, this is not good news for you in business life in any event, certainly not with a franchise.

Article by Richard Pakey

Richard Pakey is a franchising expert and Managing Director for the awardwinning Lime Licensing Group and can be contacted in the following ways: Email: richard@limelicensinggroup.co.uk Mobile/text/whatsapp: 07904 697591

The pros and cons of ad-hoc franchise territory design

If you’re thinking of growing your business through franchising, you’ll want to ensure that your franchise territories are optimised for future success.

This starts by ensuring that they are designed in the right way and offer the same opportunities to every franchisee that joins your franchise network. After all, you don’t want some of them to really struggle to make sales whilst others have more demand than they can deal with!

But franchise territories can be designed in a number of different ways, although some methods can prove to be less effective and actually cause damage to your business in the years to come.

In this article, we’re going to look at the pros and cons of designing territories on an ad-hoc basis, one at a time whenever you receive interest from a potential franchisee.

This approach may seem the easiest and most costeffective way to build a franchise network across regions or the country, but is it really the best way to go? As experts in location intelligence and optimisation, we’ll share our impartial expertise on the subject.

For ad-hoc ‘do-it-yourself’ territory design

1. If you are tailoring a territory to meet the needs of just one potential franchisee, you can design it exactly how they want (often based on their home location).

2. Concentrating on franchise territories one at a time can feel easier, less time-consuming, and less overwhelming than trying to create a cohesive network covering a large region or a whole country.

3. You may also feel it is easier to feed vital information into the territory planning process and to take into account insight from the potential franchise holder, who may have more experience of the selected area than you do.

4. In addition, you can feed in information about your business because you know it best (although the better professional franchise mapping companies do this too).

5. You may think that working very closely with a potential franchisee on designing their territory is more likely to lead to them coming onboard and ‘buying’ the franchise area from you.