Expert Advice

Why Franchising?

BFA’s CEO Brian Smart discusses why a franchise should be a more attractive option now more than ever

The motivations for investing in a franchise are many and varied. From the desire to escape the nine to five routine, be your own boss, improve career prospects and lifestyle, franchising is seen as a very realistic option for many people who want to start their own business.

There are clear advantages to franchising:

- You do not have to come up with an idea - someone else has had it - and proven it to work!

- Larger, well established franchise operations will often have national advertising campaigns and solid trading name.

- Good franchisors will offer comprehensive training programmes in all business skills needed to allow you to operate a business.

- Good franchisors can also help secure funding for your investment as well as, for example, discounted bulk-buy supplies for outlets when you are in operation.

You will be in business for yourself but not by yourself - although you run your ‘own show’ you are part of a much larger network and will have the backing of a franchisor support team.

In addition to this, a recent study revealed that twice as many people would prefer to buy from a franchise business over a non-franchised business. However, with over 800 different franchise business brands in the UK it’s difficult for consumers to decipher whether they are actually buying from a franchise business or not.

A rise in consumer demand for more knowledge and complete transparency of who they are buying from has led to the launch of ‘Proud to Franchise’ to enable consumers to better identify suppliers, shops, services and general businesses that are ethically franchised, while giving them a more informed choice of who they buy from. The bfa suggests some steps that should be taken when embarking on the possibility of a franchise future.

Membership of the bfa: The bfa accredits franchisors using a stringent set of criteria based on a code of business practice and the European Code of Ethics for Franchising.
All members are then listed on the bfa’s website at www.thebfa.org to allow potential franchisees to check which brands have chosen to be measured by and have passed these checks.

Investment level: Levels of investment can vary, but to buy into something that requires property is likely to need a bank loan. There are three major banks that the bfa accredits as specialists in understanding franchising and providing specific teams to work with franchise business loans.

Lifestyle: Franchising is not a hobby. You will need to make sure that you are happy with the commitments needed for this new business. You will also need to consider the support and understanding of those around you such as your family and friends.

Research: All franchise businesses are different, so do your homework. Speak to existing franchisees, make sure you understand all the business operations and ensure that you fully understand the investment costs.

Professional advice: There are a host of professional advisors accredited by the bfa that specialise in franchising, including consultants, accountants, solicitors, banks and even media. They are invaluable in making sure that you’re taking the right steps and don’t miss any vital information.

If you are looking into franchising as your next step, then visit the bfa’s website at www.thebfa.org for objective advice and access to numerous educational and advisory resources. See our business directory for current franchise opportunities.

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