Things to Consider

It is imperative that you examine your decision to buy a franchise intently.  When you begin to think about buying a franchise you have to know that you are making the right decision.  Experts have discussed their own thoughts regarding how they purchased their franchise.  To help you, we have looked at the information they have supplied.  An entrepreneur, Stephen Halpin, wanted to run his own business.  He felt a franchise was the way to go based on his options.  This person bought one of the first Boots Opticians in Northwich, Cheshire. 

To select the franchise he looked around at the various businesses that were in the area as well as the United Kingdom.  He knew that the optical market was highly competitive, and starting out could be difficult without a franchise.  With the hire risks of opening a non chain related store, Halpin decided to become familiar with the franchise businesses out there.  He wanted to have the support and marketing the franchise could offer.  Boots was a place he was aware of already.  He knew their reputation in the United Kingdom was considered excellent and it had a high brand awareness.  For those looking to franchise in any market this is imperative.

Another thing Halpin’s research found was that some of the franchisors who had been in business longer did not have a flexible attitude.  In other words it was their way, their fees, and nothing else.  So the decision Halpin made was also based on the ease of dealing with the main company.

It was then imperative to decide if the franchise was affordable.  To determine this you have to put together your business plan.  It must be detailed with the fees associated with the franchise you are looking at.  You will want an accountant to check out the plan.  They will look over the financial information to determine if it is not only feasible, but cost effective for you.  Your accountant can give you a clear idea for how much the business could make and how much you need to get it started.  Without the financial aspect nailed down it is not a good idea to sign a franchise agreement. 

Once you get to the stage of signing the agreement you still have a few things to consider.  You will want a solicitor to look over the information supplied.  This will tell the solicitor if the agreement is legally sound and a good idea for your business.  If there are points to negotiate the time would be before you sign. 

Halpin stated that there were some things he would have done differently.  While he looked over everything carefully, he still would have preferred more advice.  He had a professional advisor and help from Boots, but employment laws and the impact of VAT on his business were a mystery to him. This is why a solicitor can help you before and after you sign the agreement.  They can tell you about business laws you have to follow.