Points to consider before buying a franchise
Franchising is one of the most popular modes of conducting business nowadays. This method is immensely popular in the UK. However, the eventual success or failure of any franchise depends upon the support and training provided by the franchisor. The efforts put in by the franchisee also affect the performance of the franchise.
Budding businessmen or franchisees should conduct detailed investigation before selecting any franchise. Some of the factors to consider are as follows:
Ensure that the franchising consultant has investigated the franchise contract in detail. Discuss the various clauses with him/her and resolve doubts, if any, beforehand. Both the franchisee and franchisor should agree with the terms and conditions laid down in the agreement.
Ask the franchisor if they will provide you with an exclusive territory. The franchisor might consider selling a second franchise in your territory. You should also discuss details pertaining to training and assistance beforehand. Ideally, a franchisor should provide adequate support to the franchisee to help him/her in the day to day tasks. This can also help the franchisee to avoid any business risks. Ask the franchisor if they will assist you in the following departments:
• Management training programme • Employee training programme • Public relations and advertising programme • Capital and credit
Such considerations will certainly help you in achieving the desired business and sales results in your franchising business.