Franchises
By Antonia Chitty

Do you want to work for yourself, using a tried and tested business formula, with the support and back up of a head office?

Not everyone has an original idea for a business, and there can be many advantages to buying into an idea that someone else has developed. If you have a few thousand pounds to get your business going, a franchise may be the option for you.

Getting Started

There are hundred’s of franchise opportunities. Buy a franchise magazine, type franchise into any search engine, or go along to a franchise exhibition and you will be amazed at the range of options open to you.

To narrow down your choices, start by working out what you want and need:

• What are your skills? What sort of business could you be passionate about?
• What hours will work best for you?
• Do you want to run the business by yourself, with a partner, or with staff?
• Do you want a franchise you can run from home?
• Are there any competing businesses locally?
• How long do you see yourself running a franchise for? You could be signing up for 5 or 10 years.

Finance

Franchises usually cost from a few thousand pounds up to tens of thousands. Remember that, alongside the franchise purchase fee, you may also need to have an initial budget to cover rent and other start up costs. It may be a few months before you start seeing a steady income. As well as your start up investment, you will probably need to pay a monthly fee. This goes to the head office for training and support. The business owners may also arrange national advertising and promotion to benefit all franchisees. You may be able to get a bank loan towards your start up costs, but most banks ask that you supply around half of the funding.

Advice

Before signing up to any franchise, get some advice. Talk to other franchise owners in neighbouring areas and see what they find good and bad about the business. Most importantly, get advice from a solicitor before signing any contracts, and talk to an accountant about the best financial set up for your business.