No matter what franchise you invest in, hard work and strict adherence to the system are needed if success is to follow, according to Suzie McCafferty
From time to time, we all meet people who have a fairly negative view of franchising.
Interestingly, the foundations of such opinions are often rooted in statements like: “I’ve heard you need to own at least 10 to actually make any decent money” and: “You have to buy one of the really expensive ones to get a worthwhile return.” Or: “The cheaper ones are just like buying a not very well paid job.”
Own 10 of what? What’s your definition of a worthwhile return? Who told you this?
For anyone reading this who’s considering investing in a franchise, but is hesitating because of similar concerns, let’s try and put your mind at ease.
Plenty of people have invested large sums of money to buy a great franchise and then made a complete mess of it. A big franchise fee and hefty set-up costs do not in any way guarantee you a successful business with chunky profits.
You can have the greatest franchise system in the world, but it won’t work if the franchisee chooses to ignore the operations manual.
That’s maybe not a great start to put your mind at ease and perhaps it should read ‘some people’ rather than ‘plenty’, but it’s imperative to realise that no matter what model you invest in, hard work and strict adherence to the system are required if success and financial rewards are to follow.
Franchise fees should reflect the initial costs incurred by the franchisor in training you and providing you with the things you need to get started. Total investment figures should reflect the cost of opening your doors and initial operating costs.
However, just as the high investment option doesn’t guarantee you riches, the franchise you like that only costs £10,000 does not necessarily mean you’re committing yourself to meagre returns.
There are many fantastic examples of franchisees from sectors with lower initial investment levels who have gone on to build businesses with million pound turnovers and high resale values.
Sometimes the franchise fee or the management service fee will reflect the prestige of the brand, but the value is in what you get for your money. So don’t be fooled into believing the most expensive is always the best or will bring you the highest returns.
It’s all about picking the right franchise for you - which one best suits your skill set and meets your earnings requirements or has the potential to grow into additional territories or carries the best resale value.
Only you know what you want to get out of it. The franchisor will be able to tell you what is possible through hard work.
The right franchise in the hands of the right franchisee can yield excellent results in any investment category - choose well and enjoy.
About the author
Suzie McCafferty founded Platinum Wave in 2010, after gaining more than 10 years’ experience in the engine room of franchising, first as a franchisor who built her own retail brand from a single store to a network of over 60 outlets in six countries, then as the franchise director and board member of a multi-million pound division of a recruitment plc.
She is the chairperson of the British Franchise Association’s Scottish regional forum.