How To Research A Franchise

Do your homework before making an investment, Tim Bowyer, Metro Bank’s franchise business development director, says

Research suggests that the failure rate of franchised businesses is significantly lower than non-franchised business start-ups, meaning that large numbers of people are looking towards franchising when starting up their own business.

The journey to becoming a successful franchisee can be made easier by applying a few simple rules to the process, taking appropriate advice from relevant professionals and, most importantly, doing your homework.

Risk assessment

A good starting point is to carry out a risk assessment on yourself in conjunction with friends and family. What are your personal circumstances? What are your strengths and weaknesses?

This should help you decide whether to consider an established franchise concept with a considerable number of franchisees or a relatively new franchise with only a handful of franchisees. Both options present different risks.

Once you’ve identified your preferred franchise, it’s vital to visit the franchisor’s premises to see how the business works and talk to those involved in the business.

Make sure you establish what support is available to you during the first challenging few weeks and ask for a list of existing franchisees to speak to.

Prepare a list of questions, such as: