Looking for a franchise?

Every week I get asked the same question, “Which is the best franchise?” and the answer is that what may be the right franchise for me, is probably the wrong one for you. However, there are several basic starting points to help you choose the franchise business that is best for your personal circumstance.

The first issue is one of brutal self assessment. Ask yourself the questions “What do I enjoy and what am I best at?” If you are sensible you will get the answer to these queries from a spouse or best friend – the spouse may be more brutal, but you must discover the truth. An introverted bookworm is not going to succeed in a motivational coaching franchise! You must make your investment decision with your head and not your heart!

It is also important that your decision is discussed openly with all your family who will be directly impacted. For example, I remember telling my young teenage girls I could no longer take them to ballet and basketball as I would be working in my store. We made the decision to proceed around the family table and we were thus all committed to the success of the venture. They made good part timers too!

To me, the personal issues should be the FIRST consideration and not the answers to the questions which eventually do have to be asked, “How much does it cost?” and “How much can I make?” If you are unhappy with your franchise selection you will not perform well and it follows you won’t be as successful as you might otherwise be.

You must do plenty of research. I recommend the Franchise Alliance web site and that of the Franchise Council of Australia which will give you many excellent tips, far more than I can fit into a small article. The Franchise Directory which appears within the FCA site will display the vast array of opportunities from which you can then choose, and there are over 900 of them in Australia. The Australian Franchising Handbook by Richard Evans (The FCA C.E.O.) which you can buy online from the FCA web site is a very informative read.

A sensible investigator will:

1. Ensure the core product and service of the franchise has wide and accepted appeal and the business has a blue sky future – i.e. still be in business ten years hence and the franchise is not just a fad.

2. Expect the Franchise to be a Member of the Franchise Council of Australia as the Franchisor then has to abide by a code of ethics.

3. Expect that all documentation and procedures are compliant with the Franchising Code of Conduct - your solicitor will advise on that – ensure your solicitor has franchising knowledge too.

4. Do not enter a franchise without getting legal advice and accounting/tax/set up advice. See your Accountant before you spend money with a solicitor. If the accountant says the numbers don’t work for you, why run up a legal bill. Regard professional advice as an investment – not a cost. Far better to invest a couple of grand on good advice than loose your home later!

5. Expect to have unrestricted access to all franchisees. Ask them questions such as;

“If you had your time over again would you buy this franchise?”

“Do you get the support you expected?”

“Are you happy and making the money you expected?”

But don’t expect every Franchisee to be 100% happy on every issue – life is not like that. However, if 70% or more of the Franchisees say they are reasonably happy and contented you have probably found a very good franchise system.

These are just a few tips. There are many more that your research will uncover but you will learn that franchising is still booming in this country. Why? Because Franchising is arguably the most successful business model ever created and the safest way to enter small business.

For those considering franchising, there if more information available regarding buying a franchise and running a franchise.