Owning and managing a franchise has the many advantages of running a business such as being in control of a business’ destiny, and reaping the rewards from all the hard work and effort put in. It has never been a better time to open a franchise. Right now, there are a huge number of franchising opportunities in the UK and even abroad. However, there are many important issues to consider before taking the plunge and setting up your own franchise.

Franchising operates according to tried and tested guidelines but the problem is that they are not necessarily binding. In the absence of legislation governing franchising, it is largely left up to the franchisor to deliver on franchising’s implied promise. Membership of the BFA is a good indicator that all is well, but the onus is on you to investigate before you invest. One thing is certain: unless a franchisor operates according to sound franchise principles, you’d better stay clear. My previous article contains guidelines on evaluating a franchise offer. Let’s assume now that you have done your homework and found the opportunity of your dreams. What can you expect to happen next?

SETTING UP THE BUSINESS
Franchisor representatives will assist you with every facet of establishing the business. Depending on the sector, this will involve some or all of the following activities.

SITE SELECTION
If success depends on location, as is the case in the fast food and retail sectors, the franchisor’s site selection expert will help you to pick the correct site and negotiate the lease. Keep in mind that the wrong location can diminish your success chances considerably.

STORE BUILDING
Fitting-out of the store, including the installation of any equipment needed to operate the business, will be supervised by the franchisor. Once everything is in place, a franchisor representative will inspect and test everything to ensure that it operates as expected and conforms to the networks corporate identity guidelines.

INITIAL TRAINING
The franchisor will have a formal training program in place. Training consists of a mix of classroom training and work in a company-owned outlet. Depending on the complexity of the business, training can take between two weeks and several months.

STAFF SELECTION
You can expect to receive assistance with staff recruitment, induction and training.

GRAND OPENING
As soon as everything is in place, the store is ready to open for business. The franchisor will assist with pre-opening advertising and an experienced all-rounder will spend some time at your store to ensure that everything runs smoothly. Some franchisors even supply a team of specialists who work with the franchisee’s staff for a few days to help them settle in.

ONGOING ASSISTANCE
As a franchisee, you are in business for yourself but not by yourself. This manifests itself in many different ways; a few examples follow. Because you benefit from the network’s brand building activities and have access to bulk purchasing arrangements, you have a competitive edge. Periodic visits from a franchisor representative who will track business performance and provide guidance where needed and will help you to maximise business performance. Regional and national get-togethers will keep you at the forefront of developments in your sector. You will also meet fellow-franchisees, individuals who have experienced most of the problems you grapple with, and can exchange ideas with them. Given the above, it should not come as a surprise that entrepreneurs who operate a business under a well-chosen franchise are far more successful than their independent counterparts.

Kurt Illetschko is the author of Teach Yourself Franchising, published by Hodder Education as part of their popular Teach yourself series. It is available at all good book stores for £9,99. As a service to readers of SYB, Kurt is happy to answer questions about franchising but cannot comment on specific franchise opportunities. Write to franchise@intekom.co.za.