Buying a franchise opportunity is just not as harmful as beginning your own business from scratch but do you know that almost all companies that decide to franchise their business idea end up failing.
I read an article at present that suggested that up to 80 per cent of all new franchisors either fail or end up using another path to develop their market share.
Why is that this figure so high? I believe that most individuals do not realise how many hurdles lie in your path after they decide to franchise their business. Having a fantastic business concept is simply ten % of the process. The rest is about sheer effort, advertising, developing processes, creating operators manual, recruitment and then supporting your current franchisees once they come on board.
Finding the correct franchisee takes more effort than every thing else and is essential in the success of the business model.
After getting a franchise agreement in place then it should be authorised by the BFA before you can even start exhibiting at the franchise exhibitions. In addition they should approve all your advertising materials including brochures and videos before you’ll be able to exhibit.
The entire process is extremely lengthy and very costly but if you happen to use your noodles you’ll be able to lower your costs by over 50 per cent. Most of the so called specialists charge a fortune for carrying out very primary tasks.
If you wish to franchise your business step one is to attend some large franchise exhibition. Pose as a potential buyer and request all of the brochures, advertising materials and operators manuals that you would be able to get hold of. These will then provide you with a good concept as to what’s required.
After getting obtained this info then request copies of franchise agreements from the companies that are in an identical business niche as yourself.
Bear in mind that they’ll ask you to sign confidentiality agreements and a few would possibly even ask you to return their franchise packs in case you are not interested. It is usually vital to realise that you would be able to not use their material as they own copyrights to it.
What you do though is get a good concept of what’s required in terms of advertising material and how you would possibly phrase your individual franchise agreement. Do as much work as you’ll be able to your self before approaching any experts. This could assist to cut back your legal fees substantially.
Once more if you have a primary outline as to how you want your brochure to feel and appear it’s going to reduce the price of design.