Franchise Talk

Hot Tips For Franchise Success

November 2nd, 2009 | Author: Jack

Franchising offers a great way to become your own boss and own a business, while still retaining an association with a head office organisation that can provide the training, support and national presence that solo startups have to cope without. Stuart Anderson provides 10 tips for maximising your success with a franchise.

1. Understand the size of the franchise sector
The franchise industry is becoming an increasingly important driver of economic growth in the UK. If you are considering becoming a part of the sector by investing in a franchise business, it is important to understand that you will be joining a marketplace where specialised media and the British Franchise Association encourage cooperation between franchises to market the industry as a whole to consumers.

In the last year the franchise industry was responsible for £14.4 billion of the country’s GDP, according to a recent survey conducted by Franchise Development Services (Franchising in the UK 2009). The franchise industry has continued to grow despite the recession, with UK franchisors reporting an average of seven new franchised business opening in their networks in the last 12 months.

2. Analyse the success rate of franchising
It is estimated that there are over 75,000 franchised businesses operating in the UK. The survey found from a sample of these that 91.8 per cent are breaking even or better, despite operating in what is now being recognised as the longest UK recession (six quarters and counting) since records began. This success rate is reflected in the finding that nine out of 10 franchise owners say they would recommend franchising as a way of starting your own business.

If you’re considering starting your own business, findings such as these will provide a welcome confidence booster. However, it is well to remember that a business ultimately rises or falls on the efforts of its franchise owner, not its franchisor, so it is vital that you ensure that you are right for your franchised business and that your franchised business is right for you.

3. Don’t limit your search by sector… Read on.