What do you get for your money?
Answered by Bill Lockett from Franchise Systems Group
What does your franchisor offer that you can't do or get for yourself?
* Specialised equipment.
* Administration aids (product labels, logo, forms etc).
* Point of Sale material.
* National advertising program.
* On-going training programs.
* IT Support.
* Uniform and image.
The franchisors promise is to give you both an established brand name and an established business. Will it work?
Just how good is the product or service?
Exactly what is your franchisor good at
* Product or service
* Marketing
* Picking the trends and Purchasing
A great product or service is only part of the promise. Eventually that product or service will be superseded - whatever it is, you want a franchisor that is up with the times.
Does the franchisor communicate well on an ongoing basis?
* Newsletter - Internet - Regular meetings
* Annual meetings - Avenues for franchise feedback
* Field visit - Help when you need it
* Franchise Advisory Council
You want to stay close to the action in your franchise system. Are the avenues of support present and established?
What about the future?
What are your franchisor's future plans?
* Expansion
* Diversification
* Sell out
* Grow
Are you prepared to spend much of the remainder of your business life with this franchisor? Or is this a stepping stone? How?
What dispute resolution facilities are in place?
* Franchise Advisory Council
* Mediation process
* None
Find out the mechanisms that are in place should a dispute arise. Avoid court at all costs! Consider such potential problems before signing.
How do you see this franchise purchase fitting into your personal plan?
* Build it up, gain more stores or territories.
* Sell it in 3 - 5 years
* Upgrade within the franchise network
* A stepping-stone to your own business initiative.
Your franchise is something you must live with daily. It must therefore make sense in terms of what you want to do with the next few years of your life.
As you can see, the information you need to obtain covers the following four important aspects:
1. Your suitability to be a franchisee,
2. The credibility of your franchisor,
3. The business itself,
4. The fairness of the deal.
If you are healthy in all areas, you will probably succeed in your venture. Good luck!
* Specialised equipment.
* Administration aids (product labels, logo, forms etc).
* Point of Sale material.
* National advertising program.
* On-going training programs.
* IT Support.
* Uniform and image.
The franchisors promise is to give you both an established brand name and an established business. Will it work?
Just how good is the product or service?
Exactly what is your franchisor good at
* Product or service
* Marketing
* Picking the trends and Purchasing
A great product or service is only part of the promise. Eventually that product or service will be superseded - whatever it is, you want a franchisor that is up with the times.
Does the franchisor communicate well on an ongoing basis?
* Newsletter - Internet - Regular meetings
* Annual meetings - Avenues for franchise feedback
* Field visit - Help when you need it
* Franchise Advisory Council
You want to stay close to the action in your franchise system. Are the avenues of support present and established?
What about the future?
What are your franchisor's future plans?
* Expansion
* Diversification
* Sell out
* Grow
Are you prepared to spend much of the remainder of your business life with this franchisor? Or is this a stepping stone? How?
What dispute resolution facilities are in place?
* Franchise Advisory Council
* Mediation process
* None
Find out the mechanisms that are in place should a dispute arise. Avoid court at all costs! Consider such potential problems before signing.
How do you see this franchise purchase fitting into your personal plan?
* Build it up, gain more stores or territories.
* Sell it in 3 - 5 years
* Upgrade within the franchise network
* A stepping-stone to your own business initiative.
Your franchise is something you must live with daily. It must therefore make sense in terms of what you want to do with the next few years of your life.
As you can see, the information you need to obtain covers the following four important aspects:
1. Your suitability to be a franchisee,
2. The credibility of your franchisor,
3. The business itself,
4. The fairness of the deal.
If you are healthy in all areas, you will probably succeed in your venture. Good luck!
About Bill Lockett
Bill Lockett is the Director at Franchise Systems Group. Bill Lockett has a strong retail background and joined Franchise Systems Group (FSG) after 40 years international experience in senior management positions with major retailers.
You should always check independently that an ask an expert answer published on Franchise Business applies to your particular circumstances.
More Business Advice from Bill Lockett
Are you franchisee material?
Careful and thorough self assessment is that right starting ...
Which franchisor suits you?
A series of questions must be asked to identify the best franchisor ...
What is a franchise operations manual?
The ability to effectively standardise systems within the business ...
Why should I franchise my business?
Rewards can be earned by both existing owners and potential ...
More Business Advice from Franchise Systems Group
What do you regard as a good franchisor or a good franchise system?
A number of factors must be considered when determining what ...
Contact Franchise Systems Group
Unit 19, 10 Gladstone Road,
Castle Hill
NSW 2154
Tel: 1300 658 311
Fax: 02 9899 8099
