Buying a franchise

stay_at_home_mum

Hi all

Really keen on taking on a franchise but wanted to hear your thoughts? The start up fee is £2000 and running costs are really low. The potential to expand is huge. I am not business minded hence why I'm thinking of the franchise who can support me through all the setting up. Look forward to hearing what you have to say

PasturesNew

They can be great, or they can be rubbish... not enough information for people to form their opinion.

If it's something you've no idea about/no passion for, then you'll probably be rubbish at it as a lot of it is self-starting and implementing your own ideas a little ..... if it's something you'd have done just like that and you want a kick start due to "borrowing their name" under the franchise agreement, then you'll probably make a good living.

You need to look at whether other people are moaning about being ripped off by them - which you can do by Googling their name. The disenchanted have nothing better to do with their time than go online and moan about poor experiences, so read all you can that's moaning about them.... look at whether the moan is justified, if you'd have been able to cope in those circumstances ... is the moaner just rubbish/idle, or is the moaner informed/pro-active?

£2k doesn't sound like "enough" though to be more than "a clueless shower with a half brained idea that they can make themselves millionaires by flogging their idea as a franchise".

bengalknights

It would depend on the franchise model/location

For example subway franchises are having a rough patch at moment so quite a few for sale/closed.

Due diligence on the franchise would be best advised.

trailingspouse

Treat it as would if you were buying any business - due diligence. Speak to an accountant, speak to your bank manager. You could even make contact with some of the existing franchisees (go for ones a long way from where you are, so it's obvious you won't be competition. You might be surprised how helpful they can be, if only to gauge whether they feel they're on to a winner).


And in general, as you've said you're not business minded, and yet fancy the idea of buying a franchise - you need to become business-minded. Businesses fail more often because the owner is not good at running the business, rather than because they're not good at doing whatever it is they do. Your local college is likely to run bookkeeping courses, marketing courses - anything that will get you thinking like a business person. And google is your friend - find out about tax, VAT, how to pay yourself, employment law (if you need to take on staff), double entry bookkeeping, anything and everything.



You will need a business bank account, and these often come with a certain level of free advice, whether that's an initial appointment with an accountant, or a legal advisor, or whatever. Take advantage!! Once you've done loads of research online you'll have a list of questions to ask them.


All the best, I hope it works out for you, whether or not you decide to go with this particular franchise.

motorguy

stay_at_home_mum wrote: »

Hi all

Really keen on taking on a franchise but wanted to hear your thoughts? The start up fee is £2000 and running costs are really low. The potential to expand is huge. I am not business minded hence why I'm thinking of the franchise who can support me through all the setting up. Look forward to hearing what you have to say

£2,000 is a relatively low entry point for a franchise.

How do you know the potential to expand is huge?

What does the franchise give you that you couldnt replicate yourself?

What are the ongoing costs associated with the franchise?

Have you spoken to other franchisees about their experiences?