Richard Holden, Head of Franchising at Lloyds TSB, explains why it is essential for anyone considering investing in a franchise to thoroughly research the market and take appropriate professional advice first.
The first step in selecting the right franchise for you is to eliminate all the brands with investment levels outside your budget and those that will not generate the income you require from the business. Be aware that there is no standardisation across the franchise media regarding advertised investment levels, which can be confusing and, in some cases, confusing for potential investors.
What you really want to know is the likely total investment costs including all equipment costs and working capital needed to operate the business. Unfortunately this information is not always immediately transparent.
Experts in banks that specialise in franchising are able to provide impartial guidance about franchise opportunities. If your own bank doesn’t have a franchise department then speak to a bank that does. Continue reading.