When you start to take a closer look at franchise businesses, the variety of opportunities offering the prospect of financial security and the change to grow a prosperous business seem to be unlimited. As you look around, you’ll find that there are opportunities in almost all the industry sectors you can think of, such as catering, IT services, automotive, and even dog services! You’ll eventually come across a business that suits you and allows you to buy into a ‘pre-built’ business that has all the brand power and established marketing strategies that might take you years to build on your own.

The dream of being your own boss is a goal that many would-be entrepreneurs aspire to. Further research by those who are looking for a franchise, often results in much optimism and excitement at the chance to step in to a pre-built and proven business model. For those lacking in business experience, training is often provided by the franchisor to help ensure the success of the franchisee.

However, not all franchises are the same, and some caution should be exercised by any potential franchisee before making their investment. There are no guarantees with any business, and the faith placed in the ‘off the shelf’ packaging of a franchise is often misplaced. The regulations and restrictions of a franchise are often many and widespread, covering almost every aspect of the business. With good reason, the franchisor wants to be able to offer an identical customer experience across all franchises, and so decisions about business direction or marketing are almost always taken on a corporate level rather than by region.

At a very basic level, a franchise will allow someone to make use of a brand, trademark or logo in accordance with the terms of that agreement. At the other end of the spectrum, the agreement may include services provided by the franchisor such as assistance with acquiring premises, training, marketing and supply of product stock.

When you start to pull back the covers on a franchise opportunity, you may soon start to discover that it is not quite as ‘pre-built’ as you may have first thought. There may be skills and knowledge required to run a business, which the prospective franchisee simply doesn’t have, and the thought of controlling every aspect of the daily business operations such as marketing, employees, maintaining stock levels and bookkeeping can seem like a bridge too far for many. The costs of investing in a franchise will also increase directly in proportion to the amount of business that comes ‘out of the box’. The more that is provided, such as supply of products and managed marketing campaigns, the more the franchise is likely to cost.

During your research, you should also take into consideration such things as local geography and the local market. Is the product or service you intend to provide suitable for the area that you will operating in? Is the company that you are looking to invest with experienced in dealing with your local area? What is your competition like? Look at areas such as demand for the product or service you want to provide, the level of competition, the dominance of competitors and the level of services and support that your franchisor will be able to provide you to help you succeed.

Starting any business is tough, and you should look at the longer-term picture. Is this something that you want to do for the long term? The workload can also put a strain on family and social life during the early days, so it is important to have the support of your spouse, family and friends. You should also know your numbers! Have you considered all of the financials and completed detailed profit and loss forecasts? Not having a good grasp of the financial aspects of your business is a sure fire way to failure!

Given that I’ve already mentioned the level of control that the franchisor will have over the direction and approach of your business, it is important to understand the ethos of the company that you are going to be associated with. Is there compatibility between you and the direction that the company is driving towards? You should also consider the corporate culture of the company and whether this is a good fit with your own personal values.

Lastly, you should also look at your belief in yourself and your ability to build or learn to build a successful business. Consider that success does not always come quickly, and persistence and determination are needed in abundance as you strive towards your goal. By giving good consideration and thought to all the above aspects, you will stand a much better chance of ensuring that you make the right decision.

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