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Why is a franchise less likely to fail than an independent start-up?
I’ll start with the caveat that the franchisor has been properly set up with the help of a British Franchise Association accredited consultant and is itself a bfa member.
Provided that is the case, the franchisee, even if they have no previous knowledge of running the business in question or indeed any business, will be provided with all the start-up services and ongoing training and support they need.
Many people like the idea of running a particular business, but rarely have the knowledge and experience to do so. Where should the business be located? What premises are required? How many staff with what skills, will be needed? How quickly will sales grow and when will the business likely be profitable? How should the products or services be marketed, sold and delivered? A good franchisor will know the answers to all these questions.
An independent start-up will not have such a broad range of expertise available to them or if they do will likely be paying a lot more for it than they will from the franchisor. The added advantage for the franchisee is that they will be operating under a recognised brand and a proven system, surrounded by like-minded people who all want to be successful.
Brian Duckett is chairman of The Franchising Centre, part of the world’s largest network of specialist franchise consultants.
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