If you are considering joining a franchise you need to be aware of what is involved and how to identify which businesses may best suit your needs. Here are some key areas to consider:
Membership of the bfa: the bfa accredits franchisors using a stringent set of criteria based on operational procedures, franchisor/franchisee practices and the European Code of Ethics for Franchising. All members are listed on the bfaâ€™s website to allow potential franchisees to check which ethical franchisors have passed these checks.
Financial commitment: levels of investment range from smaller amounts, that you may already have available, to larger amounts that you may need a bank loan for. There are three major banking groups that the bfa recognise as specialists in franchising: HSBC, Lloyds and RBS/NatWest. Make sure that you ask for their franchise departments from the outset.
Your financial requirements: consider not only realistic earning potential, but also working capital requirements while your business is establishing itself and may not be turning a profit.