By Joel Caws

Selecting a franchise business as a route to starting up a business can be a great choice. Like anything, there will always be two sides to the coin, but lets look at five important characteristics that a franchise can offer in contrast to a non-franchised business venture:-

1. The Franchise Business Formula

The heart of any franchise business is its franchise formula. This is primarily comprised of the business structures and processes that make the business happen and that make it a potentially profitable venture. These elements make up a core part of the franchise manual that becomes a new franchisees ‘bible’ to read and follow, in order to reproduce the achievement of the original franchise pilot businesses.

2. Proven Track Record

The good thing about a franchise is that you can often talk to other aspiring business people, just like yourself, who are already running the franchise opportunity you are considering as a business. The franchisor will usually be able to provide a list of franchisees that they are happy for you to contact which can act as references for the franchise venture. It can give you extra peace of mind to speak to people who have already travelled the road you are on and have already taken on, and are actually running day-by-day, the franchise business.

3. Training & Support

Unlike starting up business by yourself, franchise opportunities are usually provided with a level of training and on-going support. This is to enable you to run the business effectively and successfully by understanding the franchise formula and how to apply it to the day-to-day business activities.

4. Financing

The majority of high street banks have franchise sections that specialise in funding franchise business start-ups. You will still need to prepare your business plan, but having the weight of a franchise system behind you can give the bank some extra assurance that you are working with an already established and proven business concept. This may give you an edge in getting any funding you might need.

5. Franchise Association Support

There is plenty of help and support offered to those considering franchising as a route to starting a business. In the UK, the British Franchise Association (bfa) is an organisation of which many franchise businesses are members.  The Association helps to promote ethical franchising in the UK and it can therefore give some extra peace of mind if the franchise system you select is a member. Additionally, the bfa can be a resource for any other help you might need such as pointing you in the right direction for professional support such as for legal and financial issues. Other countries have similar franchise organisations in place to hope promote franchising in their respective countries.

Finally, its worth bearing in mind that, a franchise is a business like any other. A willingness to work hard, be determined and dedicated to the franchise system, are all essential to give you the best possible chance of success. A franchise in itself is no guarantee of success, but it does give you the chance to get out of the starting blocks running.

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