Starting a new business and choosing to invest your time and money in a franchise is a big decision, there will be a lot to consider: what do you get for your money? How successful is the existing brand/product/franchise model? What is your likely investment and return? Do you believe in the brand values and offering? And does it fit with your lifestyle goals and aspirations?
These are just a few of the many important factors you will have to consider when deciding which franchise to choose. We explore these questions below, to try to help ease the process when you are deciding which franchise to buy into.
When considering which franchise to opt for you may search through and browse many directories, websites and brochures, but aside from the pretty pictures of smiling franchisees and glossy product promises, you need to be able to put in to black and white what the brand is offering you over and above what you would be able to achieve if you went out and started the same from scratch.
For example at Just Shutters we are extremely transparent, even in our brochure we break down exactly what you pay for so you can see the value instantly, let us examine the marketing part of the launch fee as a guide (this doesn’t touch on our training, systems, office functions and staffing support) – you pay us £4,000, in return you get 5 expertly written unique web pages that form your own bespoke part of our site, this is written by an SEO expert who has achieved position 1 in Google for all our franchisees so far. You have business cards, brochures and literature designed and printed with your unique details, adverts and trade affiliation letters, flyers and point of sale docs created with your details upon them. You have a G+ and Youtube account created and branded, you will have a Google places and my business listing. You will have a video created with your own telephone number; this will be uploaded onto your Youtube channel and web pages and used as a marketing tool. You will have a Facebook campaign and Google Pay per Click campaign set up by our shutter-marketing experts. You will also have £1000 spent directly on these campaigns. We have obtained quotes from these experts and as a guide you would be looking at spending £9,600 minimum if setting this up from scratch and looking to obtain the same results.
A franchise should be able to give you these figures and added value they bring before you should consider them as a business investment opportunity.
Franchises often quote brand awareness as ‘bang-for-your-buck’ and quite honestly it is greatly important, if a franchise has a good reputation and trading history it is worth a lot to you and your potential customers, BUT before getting swept away with the concept, do your research! Ask to speak to their existing franchisees, look at their financial information and ask what it is based upon.
Search Google for the existing franchisees and see if their marketing is working, remember when deciding which franchise to buy, you have to be sure that the business you are investing in delivers on it’s promises.
All franchises should be able to get their hands on these figures instantly, they should be published openly on websites or company literature, and while the ins and outs can often be hidden behind a confidentiality agreement (which is standard practice) you should be able to get headline figures freely, for example – franchise fee (and what this includes), expected cash-flow including any additional monies you could be expected to invest, turnover, gross and net profits.
While these figures themselves are important you should always dig a little deeper, ask how the company came upon these figures, have they been proven, are they averages or based upon best performing franchises? And do they take into account a salary?
We are very open with our figures, the cost of each franchise territory can be found on our available franchises page, the returns are also published as per the image below:
It is very important when considering which franchise to invest in, that you consider if it holds the same visions and values as you aspire to. Does it have a reputation you believe in, do the products and services feel like the quality and value you can really get behind?
It is all very well investing in a franchise with great return prospects but when you are sat in front of a customer, you have to believe in what you are selling or there will be no sale and therefore no return at all!
Firstly you have to remember that any new business whether hew start up or franchise takes hard work and dedication to grow, however you will want to look at the bigger picture too, does the model allow flexible hours? Expansion potential? How long until you are likely able to take on staff? Do your goals and the company goals tally?
These questions should be answered by the franchisor very readily, they should also be very mindful of your goals, targets and aspirations, it is important that both parties understand the others’ expectations.
So while you are browsing directories, deciding which franchise might suit you best, keep the above in mind. And don’t forget to download our brochure; we are happy to answer all of the above!
You might like to see our page: Things to ask a franchisor