The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
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How safe is my investment in a franchise?
Entering into any form of business venture is never going to be risk free, and entering into a franchise agreement is no different. However, thoroughly evaluating the franchise you are considering before you sign the franchise agreement can give you a good chance of making it a success.
There are a number of things you should consider doing before entering into a franchise agreement, which include:
• Assessing whether or not the franchise is suited to you and your particular skills.
• Gathering as much information about the franchisor as you can, including its finances, to get an idea of its financial standing and ability to provide support to its franchisees. If it is a company or limited liability partnership, you can obtain its accounts from Companies House. You could also ask the franchisor for its turnover and profit figures.
• Taking advice from an accountant on all financial information obtained, especially any projections for the franchise business provided by the franchisor.
• Gathering information from other franchisees on their experiences of the franchisor and how successful the franchise concept has been for them. Try to choose the franchisees that you contact yourself, rather than relying on any selection provided by the franchisor.
Check if the franchisor is a member of the British Franchise Association, as bfa members will have been independently evaluated against criteria including viability and ethic.
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