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What are the characteristics of a proven franchise?
The more franchised outlets that a system has operating and the more those franchisees are happy with their business, and achieving the performance claimed by the franchisor, the more proven is the franchise. That statement raises a few points. Just because a business has lots of company-owned stores operating successfully doesn’t mean it can be a successful franchise. Company stores prove the concept works, not that it works as a franchise. Also, just because a business works in other countries, doesn’t mean it will work here. Finally, just because there are lots of franchisees in a system doesn’t mean they are doing well - many franchises may have been mis-sold. So how do you find out whether the franchise you are considering is proven? Get details from the franchisor of how many franchisees it has and how long they have been operating. Then contact as many of the franchisees on that list as you can and ask them how they are doing. Check with your bank - they are more likely to support well-established systems - and the British Franchise Association, whose Full Members have to have been practising franchisors in the UK for a number of years.
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