Escape Teaching and work from home
FranchisesWhat is a Franchise?In a Franchise the franchisor sells a business model to the franchisee. The fee paid usually includes marketing, a site, vehicles in company livery and training.Why Pay for a Franchise?Franchise businesses have a much greater chance of success because the franchisee has training, guidance and supervision in the early stages.Many people dream of running their own business and of giving up the day job. Most of these only have the most basic of skills needed and recognize that their business would not stand a great chance of success. A Franchise is the answer for many of these would-be entrepreneurs.This support is expensive and the franchisee may have to pay a percentage of turnover or profits to the franchisor. Franchise operations do offer a supported and easier route into running your own business than just going alone, but there can be heavy upfront costs. Franchise ExamplesMany high street businesses are run on a franchising business model including McDonalds and many other fast food and coffee businesses. Other favorites are cleaning businesses and vending machine businesses.Franchise DisadvantagesYou have to obtain your supplies from a limited range of approved suppliers, or even, just from the franchisor. You have to stick with the franchisor's business image and are not free to develop or change the image as you want to. |
Choosing a FranchiseYou need to research any potential franchise in great detail and to make sure the franchisor is part of a Franchise Member Group. If possible you should talk to others with the same franchise and try to benefit from their experience.You may find franchises from unscrupulous business owners who have decided to offer franchises in an unproven business to make a quick buck. It is important to choose a business that fits your personality. The lower cost franchise opportunities are often one man band operations like carpet cleaning or dog grooming. These franchises will work for people who are outgoing and enjoy talking with customers. Your choice will be limited by the purchase cost of the franchise. Franchise businesses can be bought for as little as £3000 or as much as £750,000. FinanceYou may need to borrow money from a bank to purchase a franchise. Banks are more willing to lend to set up a franchise operation than they are to someone trying to set up a business from scratch. The franchise owner is 85 times more likely to succeed, so the bank stands more chance of getting its money back!Banks will usually only lend 50% of the set up costs, you will need to find the other 50% from other sources. Your 50% can include furniture, computers and other equipment that you already own and are going to use for the business. Banks often have special terms for new business accounts. These may include no charges for up to two years. Shop around to find a good deal. Banks will negotiate and you should avoid just taking the first offer. Don't be apologetic, banks make money by lending it to businesses. If nobody borrowed money banks would go out of business.. |
Privacy Policy
This website does NOT collect any data that identifies individual users. You will not be asked for names, email addresses or phone numbers.Spam policy
We loathe spam, unsolicited email as much as you do. We regard email marketing as a form of spam and will never send unsolicited emails.Legal Necessity
The advice on this site is the opinion of the owner. The success of the strategies outlined here will depend on the abilities and efforts of the individual. No responsibility can be accepted for any loss, financial or otherwise, that may arise from individuals following this advice.