Form a core group to assist you in your responsibilities as a franchisee
The UK is recognised as one of the very few countries with few regulations on franchise business. The British Franchise Association (the BFA) has propagated self regulation upon franchise opportunities in the country, which is also considered the most sophisticated form of legislating franchising.
The direct franchising business model is mostly prevalent in the UK, the Republic of Ireland, France and Belgium, within Scandinavia, Austria and Germany. In the case of direct franchising, the potential franchisees, bankers and suppliers may not be certain about the commitment placed by the foreign franchisor.
If you are engaged in a direct franchising business or any other kind of franchising like in the retail sector, always form a core group of reliable and responsible persons to assist you in your business. They should have:
• A good knowledge of the business • Basic awareness of the fundamental working principles of the franchising business • A good grasp of the market
One of them may be one of your family members too who is always available and can handle the business when you are away.
On their part, franchisors have a lower gearing than in a non-franchised business, and are thus able to remain stable for longer in a recession.