• Finances: Do your sums and find out realistically what funding you have available or potentially available. If you are looking to raise finance it is worth noting that there are three major banks that the bfa accredits because they understand and specialise in franchising. Ask to speak to a specialist franchise department or advisor. By speaking to a bank that is familiar with lending on franchise investments, you are more likely to secure the funding you need.
• Lifestyle hurdles: Ask the question “Do I fit this business model?†For example, if you are looking to invest in a restaurant, are you able to work nights and weekends? If you are investing in a cleaning business, it will be difficult if you have an adverse reaction to certain chemicals. It sounds logical, but be sure of the chosen field. Those franchises that succeed tend to be those with close family and friends around them who are willing to provide help and support.
• Do your research: Market research is vital, take time to look at the different types of business models available to you, because there are so many out there. Keep an open mind about what industry sector you are interested in rather than simply choosing a business sector that you understand or have experience in. Be aware that when you sign up to any franchise you are buying someone else’s brand and they will want you to adhere to their systems and methodologies. It may be that a completely new area suits you much better as a new challenge also means no preconceived ideas.
• Honesty is best: Make sure that you thoroughly investigate any franchise opportunity that you are seriously considering. Look further into the franchise and get as much information as possible. The franchisor should be transparent about success, where in the country it has performed well and also where it hasn’t. Ask to speak to a number of other franchisees not just the one the franchisor recommends, they should be open and honest enough to allow you to speak to any one of their franchisees to ensure you get the information you need to make an informed decision. If the franchisor is a bfa member, you will already have a certain level of assurance that the business is independently measured against an ethical code of franchising practice.
• Look carefully at all costs: Make sure that the franchise investment includes the cost of operating capital and stock, or at least if it doesn’t, that you are aware of it. The last thing you need is surprise bills and other charges cropping up. This is really about doing your own due-diligence.