When you invest in a franchise, you are committing to a long-term relationship with your new franchisor. Like it or not, they are going to be the one you turn to for advice and support over the course of your franchise agreement.
Ensuring you enter the partnership with no questions left unanswered is essential!
Ahead of The British & International Franchise Exhibition, which takes place on 9 & 10 June at Olympia London, here are five of the not-so-obvious questions you should ask a potential franchisor before you take the plunge.
1. Are you a member of the British Franchise Association (bfa)?
The bfa is the voluntary, self-regulatory body for the UK franchise sector. In order to become a member, franchise brands must prove they operate a genuine, business format franchise model and commit to uphold a code of ethics, offering you some piece of mind.
Either way, it's essential to do your own due diligence before you invest. Don’t miss your chance to chat to the bfa team, legal experts and franchise consultants face-to-face at The British & International Franchise Exhibition this summer!
2. Can I speak to your franchisees?
If not, why not? A franchisor should be open and happy for you to chat to existing franchisees so that you can ask questions about the day-to-day running of the brand. Ideally, they’ll put you in touch with franchisees across a variety of business levels and territories. If a franchisor is obstructive in any way, that’s a red flag.
3. What evidence do you have that there is current and ongoing demand for the brand?
Franchisors offer a proven business model, but can they demonstrate that there is demand for their goods or services? In the current economic climate, this is one of the most important questions you can pose to a potential franchisor to ensure your investment will stand the test of time.
Take it a step further by asking for specific data about projected demand in your desired territory!
4. Which members of the Head Office will I be interacting with on a daily basis?
The person you’re liaising with in advance of signing your franchise agreement may not be the person you have to work with day in, day out. See if you can arrange to meet the rest of the franchise team face-to-face to see if you would work well together (bonus points if you get to meet them at their Head Office!)
5. How do you support your franchisees when they are ready to move on?
Although it may seem premature to talk about what happens after your franchise term before the agreement is even signed, you can’t skip over this point. It is worth asking what their franchisees typically re-sell their businesses for, how they will assist you, or whether you can gift your business to a member of your family.
There you have it! Five questions to make sure you step into your role as a franchise business owner with nothing left unanswered.
Wherever you are on your franchise journey, it is widely agreed that attending a Franchise Exhibition is the best way to gauge whether a franchise brand is right for you. You get to meet the teams behind the brands and ask your questions face-to-face, listen to 50+ free educational seminars and get free expert advice from franchise lawyers, funding providers and the bfa.
Meet your franchise match this summer at The British & International Franchise Exhibition at Olympia London on 9 & 10 June.
@UKFranchising