You may be asking yourself what the difference between investing in a franchise and starting a business from scratch is. In its simplest form, investing in a franchise means that you can really hit the ground running as someone else has already ironed out the business formula.
Your franchise fee is buying you access to decades of industry experience and expertise, which includes a proven business model, a recognised brand name and an established Head Office team offering day-to-day support and help to ensure your franchise grows and succeeds.
Franchise ownership can provide the perfect way to achieve financial success, read our success stories to see why our franchise owners decided to go into business for themselves but not by themselves.
Want to learn more about becoming a franchise owner? Use the tabs above to read more about the advantages of buying a franchise and how to choose the right franchise for you.
The advantages of joining a franchise
Starting a business can be a daunting prospect, but joining a franchise means you get to enjoy a host of benefits which can dramatically increase your chances of success.
These are just a few of the advantages of joining a successful and pro-active franchise:
Franchise sector grows to record heights
According to the 2013 NatWest British Franchise Association Franchise Survey, franchise businesses across the UK reported record highs in turnover and full-time employment.
The research, which analysed the five year period after the country entered recession in 2008, shows 20% growth in the sector compared to a 2.5% contraction in the overall economy during the same period. It also reveals that 92% of franchise owners reported profitability, including those running new businesses.
These impressive statistics reinforce the fact that the franchise industry offers exciting opportunities and delivers impressive results for motivated and committed people.
Choosing the right franchise
People buy into franchises for a variety of reasons. In order to find the best business franchise for you, you must assess your own skills and experience. Once you have identified what is most important to you, then you can take the next step and select the franchise type that suits your strengths and needs.
Which franchise is right for you?
It is important to consider these three key points:
Draw up a list and ask yourself if you can apply them to your ideal franchise. Consider things such as whether you are a hands-on person, if you like to sell, if you are committed to customer service and whether you have good management skills.
Consider whether you would be happy working behind a desk all day or if you think a life on the road would appeal more to you. Is it important that your business is situated close to your home and would you consider re-locating?
What are your hobbies and interests? Do any of these fit with the franchise businesses you are considering? For example, if you are interested in motor racing, would you enjoy the chance to work in the automotive industry?
You must be totally honest with yourself because your answers to these questions will help to determine whether or not you make the right choice for your future.
Does my franchise guarantee success?
A good franchise will provide you with the foundations and support you need to launch and run a business that has a proven track record of success. However, no one can guarantee success.
You must therefore also consider these points before investing in a franchise:
How to choose the right franchise
Just as launching a new business can be daunting, so can choosing the right franchise for your needs.
12 important questions to ask a franchisor
To help you make up your mind you should put these 12 key questions to any franchise business you are interested in and carefully consider the answers before making a decision that will change your life.
1. How long have you been franchising and what are your personal credentials?
etyres has been franchising since 1995.
2. How many franchised businesses are you currently running?
etyres currently has 42 franchise owners.
3. Can you help me prepare a business plan and apply for funding from a leading bank?
etyres will help you write a business plan and guide you through the finance application process.
4. What is the full cost of your franchise? Will you set out and supply a breakdown of all the costs necessary to launch the business?
The start-up costs total £23,431*. This includes the £20,000 initial licencing fee and £3,431* to cover van deposit, marketing materials, computer equipment, uniform and training. A full breakdown of start-up costs will be provided.
5. What does the initial franchise fee and the continuing management fees cover? How are the fees calculated?
The etyres franchise fee covers training and a five year license to use the brand name and associated collateral. Continuing management fees are calculated at 6% of monthly turnover and cover operational costs.
6. What marketing collateral do you supply and what do I have to pay for it?
As part of your start-up pack you will receive 25,000 leaflets, 1,000 business cards and branded uniform. You will also have access to a regional promotional kit containing an A-board and gazebo.
7. What is the extent of the training I will receive? Does it cover all aspects of the business including practical and core business skills?
etyres franchise owners benefit from extensive initial and on-going training. Read about our training programme here.
8. What level of on-going support is offered? How would you help if I ran into operational problems that I could not solve?
etyres franchise owners receive on-going support in all areas of the business from a dedicated Head Office and Operational team.
9. Do you encourage franchise owners to communicate with each other? If so, how do you arrange this? Do you publish a newsletter or organise regional meetings?
etyres produce regular updates to keep franchise owners and Head Office staff up-to-date on the network’s activities. There are also annual regional meetings that are attended by franchise owners and members of the Senior Management Team.
10. What trends do you see emerging that could have an impact on the business in the next decade and what are you doing to meet these challenges?
A focus on customer convenience means that the demand for mobile services is continuing to grow. High street competitors have started to offer a mobile tyre fitting service, however this does come at a premium to the customer. We continue to meet challenges such as these by honouring our mission statement and refining our service offering.
11. What is the length of the franchise agreement? Can it be renewed?
An etyres franchise agreement lasts for five years and can be renewed.
12. Can I re-sell my franchise?
Yes, we do allow for franchise resales.
Your ideal franchise
The responses to these and any other questions you ask will reveal a lot about the values held by the company and its ambitions for the future. Your ideal franchise will be revealed if the company’s outlook and attitudes match well with your own aspirations.