In recent decades, franchising has become an increasingly popular form of business ownership. Many people who have dreamed of running their own business have discovered that investing in a franchise is a good option. However, franchising is not right for everyone, and so how can you tell if franchising is right for you?
There are many reasons someone might choose to invest in a franchise. For some people, it could be the opportunity to get involved with a particular brand. For others, it could simply be that they believe franchising represents an easier route to business ownership. Whatever the motivation, not everyone is fit to be a franchisee. Before investing in a franchise, you should ask yourself the following questions:
Am I willing to follow someone else’s system?
One of the advantages of franchising is that much of the work that normally goes into starting a new business has already been done. The brand has been created and operating procedures have been established. While in many ways this makes running the business easier, some franchisees may find the system too restrictive. In general, franchisees are expected to operate according to established procedures and there is little room to make changes and implement their own ideas. If you don’t think you can operate under these restrictions, franchising may not be right for you.
Can I accept advice and criticism?
Most franchises will provide training and support to their franchisees. While most franchisees will appreciate this help, others may not be as interested. Franchise companies will expect your business to be run a certain way; if not, the franchisee can expect, at the very least, to be told to improve. If a franchisee feels that they know better and are not willing to accept any type of criticism or advice, then the franchise is probably not right for them.
Am I willing to be part of a network of other franchisees?
All franchise systems involve a network of franchisees. Each franchisee in the network will share common procedures and resources. For example, in many franchise systems, marketing costs are shared between each franchisee. As a franchise, there are times when you may need to accept that what is right for other franchisees in your network is not necessarily right for you. If you are not willing to accept that decisions may sometimes be made that are not in the best interest of your particular branch of the franchise, then franchising may not be right for you.
If you’ve answered yes to each of the questions above, investing in a franchise might be a good idea. There is no doubt that for many people across the UK investing in a franchise has been a wise and successful decision.
