Franchising, how to investigate?

lynzpower

Hi there all

New to all this side of things. Ive been working for the state for a while, and looking for some years into trying to change career into being self employed and following in the footsteps of my parents who work in the same industry. Needless to say, I had written it all off as impossible, due to the costs of renting retail units.

Now, Ive come across a franchise, that on first glance seems to fit the bill perfectly.

Now, Ive had a nose around a few of the business forums people have posted about on here, and there does seem to be a bit of a negative overload on franchises, plus of course no one is really able to mention which franchisor they work for when complaining due to legal issues in doing so.

Im going to phone up the franchisor and go for it, but first off, what sort of questions should I really be asking?

I know this is a how long is a piece of string type question, bu any help& guidance while im investigating this would be great. the main thing I would say is, how do people do research as to whether there is a legitimate market for the product? I presume there is, but I want as much proof as possible.

Help me get through this maze with my senses sharp!!!

MORPH3US

Franchises are notoriously expensive to get started.

I have heard of franchises making the owner a loss for the first 3 years or more but if you can afford that then in the long run, most good franchises will virtually guarantee you a profit.

It'll just be difficult once you start making a profit and get established to see a big proportion keep going to the franchisee whilst its you slugging your guts out!

Any clues what area the franchise is in?!

M

lynzpower

Morpheus, I really dont want to say at this stage, but I will say, its fast becoming a household name, for a very consumable product, and repeat business looks much more positive. Plenty of good reports about the company on here, recieves some excellent reviews.

As its a cheap product, Im going to get people in my extended family round the country ( particulalry my parents who are very skilled in the product quality side of things) and knock up an assessment tool from that side of things.

Its not a high end market by any stretch, so I have a good feeling around the repeat business side of things.

I think the time has come to give them a ring, and get as much info from them ( printed) as possible, and then I can start thinking seriously as to whether its something worth pursuing.

Wish me luck

Emmzi

Lynz,

have a look here for starters

http://www.british-franchise.org/

and PLEASE visit FREE local enterprise trust small business advisor before parting with any cash!!

Pobby

Hi Lynz.My advice to you is be very,very careful with what you do.I was ripped off some years ago by a bunch of franchise crooks.A friend of mine was promised the earth by a company who advertises nationally.It was a complete waste of time and money.

I deal with a couple of major franchises in my course of work.You would know them but I am not prepared to say here in public.Entry level,around 250k so a lot of cash.I would say that a fair few do O.K but not all of them.

It pays to talk to other francisees,not the ones that the company give you but ask for a list and you select the ones that you want to talk to.Anyway,all the best with it.

lynzpower

thanks to both of you, Dont worry, Im treading very carefully, Im only in the consideration stage, and probably will be for bloody ages, ( Emmzi- remember the garden furniture debacle;) )

hollydays

I saw a Franchise featured in the Daily Mirror yesterday-it seemed too good to be true.On closer inspection,it was.