Fancy A Franchise? What You Need To Know
Image by Alterio Felines from Pixabay
Always fancied having your own business but don’t have the confidence or knowledge to do so? Don’t worry; starting your own business is no easy task, so you’re not on your own, and you’re not stupid to have these concerns. Rather than starting your own business, though, something else you could do is to open a franchise and buy into an established company to get yourself started in business without having the risks of going out on your own.
Going with this option means that you will already have a business structure and be able to operate under the banner of an already established business. You will have an already tried and tested brand, ideas, and operating techniques that work and can be implemented again and again, so all you need to do is find the best franchise to own for you and the right location.
You won’t have the job of trying to establish and build the brand of the business as it’s already been done for you and will have a steady stream of loyal customers to the brand. Often franchisers will also offer training schemes and support with things like the management of accounts, sales, and advertising, which can be invaluable when you’re just starting.
If this sounds tempting to you, then it’s well worth looking into and seeing what your options are. However, there are a few things you should be looking out for:
You should pay careful attention to your contract as it should contain all the critical details about your franchise, from the necessary information such as the name to the vital points like your territory and fees. The contract will likely be a lengthy document, so you must understand what you are signing up for. Franchises are often granted for a minimum of five years, and it’s quite normal for you not to be able to get out of it early even if you don’t like it.
As a franchisee, you are responsible for any staff you have, and you are accountable for their actions, for example, if staff use customer data improperly or abuse social networking sites to damage your brand not only can the franchiser terminate your contract but, you are often financially responsible for any damage caused. Make sure that you have appropriate policies in place with staff and that your employment contracts protect you if this happens.
Your Customers Are Not Yours
If you do well with your franchise and make a real success of it, you may be tempted to let your contract expire and then go it alone by setting up your own similar business, with a different name obviously and then diverting your customers to it. This would not be good practice, and as most franchise contracts contain enforceable provisions that prevent you from doing this for a limited time, then it would most likely be illegal. If you are tempted to do this, get advice first as it could cost you a lot of money and a lot of heartache.
Speak to other franchisees in the same business, ask them about the financials and the funding that you will need. Also, make sure that you have taken the time to look to see who are the competitors already in your area. If you are worried about it not working out, consider asking for an option to terminate after 18 months.
If you have decided a franchise would be the ideal career path for you there are many places online where you can learn more about franchising and where you can browse franchises for sale if you feel you are ready to dive in to your franchising journey browse a franchise directory called https://franchiseek.com/ providing the best franchises for sale in the USA.
The point you make about the customers belonging to the parent company is vital. A hair stylist I used to go to decided to branch out on her own, with the support of the company, only to find herself in the middle of a legal tangle when, of course, her dedicated customers followed her to the new salon.