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88 pages

English

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A Straightforward Guide to Buying a Franchise: Buying a franchise is probably one of the most important decisions a person can make. This is particularly so in 2021 following the impact of the Coronavirus. This guide takes the reader through all the factors needed to arrive at a decision. With franchises, a person enjoys many of the advantages of an established business, such as a tried and tested product or service, a set of established operational guidelines and in most cases, a pretty good idea of whether or not the format will work in a chosen area or location. However, it goes without saying that a decision to enter into a franchise shouldn't be taken lightly. This book will assist in the process of researching a franchise.

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Gestion et management

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Publié par	Straightforward Publishing
Date de parution	01 juillet 2021
Nombre de lectures	0
EAN13	9781802360400
Langue	English

Informations légales : prix de location à la page 0,0300€. Cette information est donnée uniquement à titre indicatif conformément à la législation en vigueur.

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A STRAIGHTFORWARD GUIDE TO
BUYING A FRANCHISE
CHANGING YOUR LIFE WITH A BUSINESS THAT IS RIGHT FOR YOU
A STRAIGHTFORWARD GUIDE TO
BUYING A FRANCHISE
CHANGING YOUR LIFE WITH A BUSINESS THAT IS RIGHT FOR YOU
Gordon Clarke
Editor: Roger Sproston

Straightforward Publishing www.straightforwardco.co.uk
Straightforward Guides
Copyright Straightforward Co Ltd 2021
ISBN 978-1-913776-47-3 EPUB ISBN 978-1-802360-40-0 Kindle ISBN 978-1-80236-031-8
All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with the written permission of the author and publisher. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damage.
Cover design by BW Studios Derby
Printed by 4edge Ltd www.4edge.co.uk
Whilst every care has been taken to ensure the accuracy of this work, the author or publisher cannot accept responsibility for loss occasioned by any person acting or refraining to act as a result of any statement contained within this book.
Contents
Introduction
The British Franchising Association (BFA)
Part 1. Franchising generally
Ch.1 What is franchising?
Franchising-a definition and history
What is business franchising?
Business Format Franchising
Product and Trade Name Franchising
A brief history
The growth of franchising
Franchising sectors
Main points from Chapter 1
Ch.2 Considering the good and bad points-is franchising the right way to go for you?
Different aspects of franchising
The pro s and con s of franchising
PROS of franchising
The use of a recognisable brand
Ongoing support
Lucrative locations
Established market
Easier access to finance
CONS of franchising
Considerable costs
Lack of control
External factors
Discipline
Franchisor Monitoring
Service Charges
Reputation
Inflexibility
Responding to the market
The job itself
Finally-considerable work
Other risks associated with franchisor performance
The established franchisor
The new franchisor
Unethical franchisors
Incompetent franchisors
Are you suited to running a franchise?
Main points from Chapter 2
Ch.3 What type of franchise to choose?
Automotive and car repair franchises
Care service providers
Cleaning services
Estate agencies
Financial services
Gift cards
Internet franchises
Parcel Couriering
Plumbing
Print shops
Recruitment
Retail
Buying an existing franchise as opposed to a new franchise
Advantages of an Existing Franchise
Track Record
Customer Base
Flexibility
Advantages of a New Franchise
Clean Slate
Lower Purchase Price
Newer Equipment and Facilities
Main points from Chapter 3
Ch.4 Searching for the right franchise and asking the right questions.
Where can you find details of franchises for sale?
Questions to ask franchisors
Main points from Chapter 4
Ch.5 Financing a franchise and preparing a business plan
Raising finance for a franchise
Peer to Peer Lending
Approaching banks and other sources for finance
The person - Who are they lending the money to?
The amount - How much are you looking to borrow?
How do you intend to pay back the money?
How much risk is involved?
The calculation of interest and fees
Forms of finance
Total cost of opening a franchise
Franchise deposits
Franchise Fees-Initial franchise fees
On-going franchise fees
Advertising Fee
Franchise Business Plan
Preparing a business plan
Introduction
The Product or Service
The Personnel
The Market
The Marketing Plan
The Operation
The Premises
Financial Information
Introduction
Profit Loss Forecast
Cash Flow Forecast
Appendix
Verifying a franchisor s projections
Main points from Chapter 5
Ch.6 the legal agreement
The franchise agreement
What is the Franchise Agreement?
The Terms of the agreement
What should I look for in a franchise agreement?
The Intellectual Property
Trade Marks and Service Marks
The Rules
Main points from Chapter 6
Ch.7 The franchisor s operations manual and franchise training
About the company
Support
Launch timetable
Training
Recruiting staff
Office
Office maintenance
Office Administration
Reporting
Vehicle administration
Marketing
Pricing
Sales and Insurance
Corporate structure
Financing
Company protection
Field operations
Resale, transfer, renewal and closing
Expansion and relocation
Franchise support
Franchise training
Main points from Chapter 7
Ch.8 The ongoing management of your business
The initial phase of the business
Finding premises
Buying equipment
Recruiting staff
Employing People
What are my responsibilities as an employer?
Discrimination and the law
Main points from Chapter 8
Part 2. Basic Tips On Running Your Business
Ch.9 Financial control
Financial Control
Profit and loss forecasting
Cashflow forecast
Preparing a Cashflow Forecast
Other Terms
Over-trading
Check your customer s ability to pay
Set out your terms of trading
Set up a system
Keep clear and accurate records
Collect your payment on time
What information should be kept
The advantages of a bookkeeping system
How to record the information you need
Proprietary systems.
The Analysed Cash book System
The Double Entry System
Computerised Accounting Systems
Main points from Chapter 9
Ch.10 Marketing generally
Market Research
Bringing people s attention to your product
Advertising
Leaflets
Directories
Advertising in magazines
Newspaper advertising
Television advertising
Radio advertising
Using an advertising agent
Direct mail
Using sales representatives or agents
Internet Marketing
Search engine optimization
Making your site visible to search engines
Quality content
The use of key words and phrases
Search engine marketing
Purchasing traffic
Email marketing
Affiliation (as advertiser)
Using vouchers and coupons
Co-registration
Rich media
Social media
Facebook
YouTube
Twitter for Business
Linkedin
Instagram
Pinterest
Blogging
Market places
Main points from Chapter 11
Ch.11 Growing your franchise-a few tips
Managing staff
Networking
Knowing yourself
Managing time
Summary of the book
Glossary of terms
Useful addresses and websites
Index
****
Introduction
Over the last 30 years the franchising industry has grown enormously and, in many cases, has provided people with a lot of enjoyment and a lucrative income. I say most cases because as with everything stories are legion of people getting ripped off and losing their shirt on failed ventures.
If you look at the trade papers, such as Daltons Weekly, you will see literally hundreds of franchise opportunities available. Most are tried and tested. A lot, however, are nothing short of comical, put together by people who have causally started a business, split it into territories and sold the rights to trade in an area. Quite often the product or service that is being sold is spurious and bound to fail. You will see as we go through the book that it is crucial that the business that you are thinking of buying into is a member of the British Franchising Association, which is discussed below.
COVID 19 and Franchising
As with all businesses, franchises have suffered during the last 15 months of lockdown. Although a significant number have given up, many have been able to reach agreement with the franchisor and other parties over rent, supplies etc and are only now able to open up. This book is about taking on a franchise going forward and recognising those areas that can thrive in the coming business environment. One such area should be online business.
Online business has thrived during the pandemic, not just the large companies such as Amazon but also a whole host of smaller companies who have positioned themselves such as companies selling car parts and a host of other products. the question is, will online business start to level out now that traditional bricks and mortar businesses return? What this means is that, before entering into an online franchise a lot of though needs to be given to the sustainability of such businesses.
While there is no guaranteed COVID-proof investment, some sectors have been better positioned than others to do well. A delivery franchise for example would have been a good investment during the pandemic. It will probably still be a good investment as we open up.
One of the qualities of a COVID-proof franchise is its essential status. Food franchises, for example, have been deemed essential and have been able to keep doors open since the pandemic hit, but that hasn t guaranteed success. Some thrived while others didn t fare as well. While there s no iron-clad guarantee of success with a recession- or COVID-proof investment, some sectors are certainly better positioned than others.
As with any business, even a COVID-proof, recession-resistant franchise can fail. Before you make any investment, it s important to do your due diligence. This book is aimed at helping you to do your due diligence and think about what it is that you intend to invest in.
BREXIT and it s effects on franchises
Brexit s impact on businesses and franchises is already being felt by many who have entered into a franchise. For others, the change is more nebulous. This depends on exactly what business people entered into and, going forward, what business you intend to enter into and whether you will deal with the European Union. Most business owners know many trading regulations with the EU have changed. But what, exactly? Below are a few things that need to be factored in when considering all aspects of a franchised business.
Brexit Tariffs and Trade
One of the biggest sticking points in the seemingly interminable Brexit n