You’ve decided to make the leap and buy a franchise. How do you know that behind the glossy franchise brochures, websites, statistics and promises the reality is a true reflection of what you are buying into? You will need to be cautious and retain a calm disposition while you complete your due diligence. Take a look at our handy guide to buying a franchise.
Establish the right opportunity for you
What is it that you are wanting to take from the franchise, explore the involvement you want and the expectations of the franchisor. You will need to find the right fit for both of you – do you buy into the branding of the franchise? Are you expected to have premises to trade from or can you work for your client base remotely? You need to consider the lifestyle implications of the franchise you choose.
The Avanti Group (UK) Ltd offer a franchise opportunity that prides itself on being different to the competition, our unique and colourful branding is a visual representation of our friendly, dynamic and approachable company culture. Unlike other opportunities, you are not expected to have premises – this is your choice to make.
Money, Money, Money
You need to be clear on what you can afford, what you are willing and able to comfortably borrow and what the real costs of the franchise will be to you. Will the franchisor help you by recommending trusted commercial finance options? Is it possible to split fees down into smaller tranches? You need to think beyond initial set up as there will be ongoing fees. These fees will contribute to future support of your business so it is important to understand how much you pay, at what intervals and what you will see in return.
The Avanti Group (UK) Ltd have many long established trusted business connections, who can help you to achieve your goals so if you’re exploring finance options, we can point you in the right direction.
Contact Existing Franchisees
Does the franchise already have an established network of franchisees? If so, a key part of your research may be contacting them to see the opportunity for their perspective. What challenges have they faced? How did the franchisor help them to overcome their challenges? Are they meeting they’re projected turnover figures? You need to add this feedback to your other research to build a full picture as challenges faced by one franchise may be completely unique – what is important here is the franchisors response, how have they supported a franchisee through the process?
The Avanti Group (UK) Ltd are more than happy for you to speak with a franchisee as part of your research process. As former franchisees we understand the process and want to help you feel confident in your choice.
Find out who you will deal with at head office
You will be expected to communicate with people at head office, so you will need to understand the links that these people will have to your business. What experience and knowledge do they bring to the table? Build relationships with these people, as they will be your support team.
The Avanti Group (UK) Ltd host training at head office when you will also meet the team. You will train with experts in their fields and when it comes to launch, members of the marketing team will be by your side to help you with the first steps.
Training
What training does the franchisor provide? You need to consider if you will be given comprehensive training or if it will be the basics covering franchisor standards? Are there opportunities to complete further training to update any technical skills and if so what are the costs involved.
The Avanti Group (UK) Ltd offer a comprehensive training program which is held at our head office and give you the knowledge an skills to walk away feeling confident running your business, this includes strategic marketing training. We also offer an online knowledge base where you can fulfill your CPD requirements. There are also opportunities to attend refresher courses if required.
Franchisee Selection
Franchise selection should be treated as a recruitment process by the franchisor, after all you will be representing the brand. Alarm bells should ring if the process seems slack with an ‘all welcome’ approach. It should be a two way process with both of you seeking the right fit for your goals.
The Avanti Group (UK) Ltd take you through a selection process from your initial enquiry, we are seeking brand ambassadors who we are confident will represent our company culture within their business. We understand that as a franchise, each of us are connected and representative of each other. Therefore recruiting the right franchisees is taken as seriously as recruiting for our head office team.
The Avanti Group (UK) Ltd started as a franchise, we understand the need to take your time, and that there will be questions along the way – we would expect nothing less. Buying a business is a big decision, and can have life changing affects so you need to be sure the decision to buy a franchise is right for you. Take your time to make sure you are happy with everything before you sign. Remember the franchise agreement is a legally binding contract that you will be held accountable to. Always make sure the agreement is independently checked by your legal representative.
If you would like more information on our franchise opportunities in either accounting or bookkeeping, give us a call (08000) 388 799. Take your next step today, let’s move you and your business forward.