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What are some of the characteristics of a good franchise?
There are no rules on what is and is not a good franchise business and the characteristics of a good franchise may vary from sector to sector. However, if a potential franchisee is considering a franchise business there are a number of basic characteristics they should look for to assist them in deciding whether the franchise business will be good for them. Some of these characteristics may include:
How long has the franchise business been operating? If it is relatively new, a potential franchisee should assess whether a pilot scheme has been successfully operated.
Does the franchise have a strong brand name and track record? Is the trademark protected?
How long is the term of the franchise agreement? Can it be renewed? Does the term give the potential franchisee enough time to recoup any capital outlay and turn a profit?
Is there any specific training programme?
Have existing franchisees received adequate support? It’s a good sign if existing franchisees are happy with the level of support they receive.
Are there provisions for the continuation and protection of the business in the event of the franchisee’s sudden illness or death?
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