Choosing a franchise can be a rewarding process, Tim Bowyer, franchise business development director at Metro Bank, says
Often when people consider navigating the route to becoming a franchisee of an established and proven franchise concept, it can seem like a long and complex journey. It needn’t be.
By applying a few simple rules to the process, taking appropriate advice from relevant professionals and - importantly - doing your research, it can be a constructive and rewarding process.
By getting under the skin of a franchise opportunity, you can discover not just how the business operates, but also how it will work in your chosen location or territory. That means asking the right questions, seeing the relevant documentation and speaking to a broad range of people involved in the franchise.
Questions to ask a franchisor
But how do you develop that level of understanding? Here are some questions worth posing to the franchisor:
- What initial and ongoing training is given?
- Does a pre and post-opening programme include marketing and sales support?
- Could I have a list of existing franchisees to call? The more comprehensive the list, the better understanding you’ll gain.
- What is the investment level and what working capital is required?
- What is the profitability? Beware of generic ‘business plans’. Ask to see a cross-section of performance across the franchisor’s business.
- Could I have a copy of the franchise agreement? When you do get a copy, seek legal advice from a solicitor who is an affiliate member of the British Franchise Association.
- Could I see your latest audited accounts? Again, remember to seek professional advice.
When you’ve got all your paperwork from the franchisor, visiting the premises and seeing the business working in action is incredibly important.
Help’s at hand
How can Metro Bank help? We believe in providing customers with the highest level of service and convenience possible however, whenever and wherever they choose to bank with us.
Our franchise customers are supported by one of the most experienced teams in the sector and what’s more they benefit from our highly trained local business managers, who are available in our seven day a week stores, our 24/7 UK-based business customer service team and our easy to use online banking.
Buying into a franchise is an exciting step. Just make sure you take your time, do your homework and take the right professional advice along the way.