{"id":10392,"date":"2021-08-11T12:08:16","date_gmt":"2021-08-11T11:08:16","guid":{"rendered":"https:\/\/www.franchiselocal.co.uk\/news\/?p=10392"},"modified":"2022-01-27T11:04:39","modified_gmt":"2022-01-27T11:04:39","slug":"how-easy-is-it-to-buy-and-run-a-franchise","status":"publish","type":"post","link":"https:\/\/www.franchiselocal.co.uk\/news\/how-easy-is-it-to-buy-and-run-a-franchise\/","title":{"rendered":"How Easy Is It To Buy and Run a Franchise?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #101010;color:#101010\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #101010;color:#101010\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/how-easy-is-it-to-buy-and-run-a-franchise\/#buying-and-running-a-franchise\" >Buying and Running A Franchise<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/how-easy-is-it-to-buy-and-run-a-franchise\/#choosing-your-franchise\" >Choosing your franchise<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/how-easy-is-it-to-buy-and-run-a-franchise\/#finding-the-folding\" >Finding the folding<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/how-easy-is-it-to-buy-and-run-a-franchise\/#seal-of-approval\" >Seal of approval<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/how-easy-is-it-to-buy-and-run-a-franchise\/#running-your-business\" >Running your business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www.franchiselocal.co.uk\/news\/how-easy-is-it-to-buy-and-run-a-franchise\/#work-it\" >Work it<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p>If you\u2019re asking this question, there\u2019s a pretty good chance that you\u2019ve been toying with the idea of leaving the 9 to 5 behind to run your own business for a while.<\/p>\n<p>For many people, owning their own business is little more than a pipe dream as they feel that the expense and risks are just too great, particularly if they have commitments such as a mortgage or a young family.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"buying-and-running-a-franchise\"><\/span>Buying and Running A Franchise<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The beauty of <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/how-to-determine-if-a-franchise-opportunity-is-good-or-bad\/\">franchise businesses<\/a> is that these concerns are significantly minimised.<\/p>\n<p>With traditional business models, getting started is an expensive business and, a lot of banks will be reluctant to take a chance on you with a loan due to the high failure rates of brand new businesses.<\/p>\n<p>With a franchise business, you\u2019re essentially buying into a business that is already proven to be successful, making it much less risky.\u00a0 Additionally, the start-up costs for a franchise business tend to be much lower than starting a brand new business from the ground up.<\/p>\n<p>Sounds great, right?\u00a0 Absolutely, however, I\u2019m not gonna lie, a successful franchise isn\u2019t all plain sailing, so, in this article, I\u2019m going to answer that burning question &#8211; just how easy is it to buy and run a franchise?<\/p>\n<h3><span class=\"ez-toc-section\" id=\"choosing-your-franchise\"><\/span>Choosing your franchise<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>When starting your franchise journey, the first thing that you\u2019ll notice is that there are, quite literally, <a href=\"https:\/\/www.franchiselocal.co.uk\/\">hundreds of different opportunities available<\/a>; and not all of them are 100% legit.<\/p>\n<p>When examining opportunities, you\u2019ll need to put in the time and effort to read all of the fine print and do your research to ensure that you\u2019re not chucking your money down the toilet.<\/p>\n<p>Make sure that you read the <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/how-to-determine-if-a-franchise-opportunity-is-good-or-bad\/\">franchise agreements<\/a> carefully and, where possible, speak to existing franchisees to get the lowdown on what it\u2019s like to run the business and what kind of money you\u2019re likely to be able to make.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"finding-the-folding\"><\/span>Finding the folding<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Once you\u2019ve chosen your franchise business, there will, in most cases, be a <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/how-does-a-franchise-make-money\/\">fee<\/a> to secure the business and a number of other <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchise-royalty-fees\/\">start-up fees<\/a> which will need to be paid before you can get started.<\/p>\n<p>These costs vary widely depending on the franchise and can range from a few hundred pounds to several thousand.\u00a0 Some franchisors will expect you to put up part of the fees from your own personal funds, with the rest coming from a bank or other financial organisation.<\/p>\n<p>Banks will tend to look fairly favourably on those <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/8-factors-to-consider-before-buying-a-franchise\/\">buying a franchise<\/a> as opposed to entrepreneurs setting out on their own due to the reduced risk but, you may still need to shop around for the most affordable deal. And always keep in mind the fact that you\u2019re on the hook for repaying your loan, regardless of the success or failure of your business.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"seal-of-approval\"><\/span>Seal of approval<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In most cases, you\u2019ll need to follow an approval process with your chosen <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-difference-between-a-franchisor-and-franchisee\/\">franchisor<\/a> and, while this differs from business to business, the process will most likely include the following steps:<\/p>\n<p><strong>Disclosure agreement<\/strong> &#8211; Once you\u2019ve expressed your interest in a franchise, you\u2019ll be sent a disclosure agreement that will detail everything you need to know, including costs and contractual obligations.\u00a0 You should always read this extremely carefully before proceeding to the next stage.<\/p>\n<p><strong>Application<\/strong> &#8211; You\u2019ll be required to complete a comprehensive application form, either online or by post, to ascertain your suitability in terms of skills, experience and financial viability.<\/p>\n<p><strong>The review<\/strong> &#8211; Once you\u2019ve submitted your application, the franchisor will review this to ascertain your suitability.\u00a0 The franchisor will be looking at several factors, including your credit status. They\u2019ll also perform a background check so, if anything is lurking in your past that you\u2019re less than proud of, it\u2019s always best to be honest about this upfront.<\/p>\n<p><strong>Interview<\/strong> &#8211; If everything checks out during the review stage, you\u2019ll usually be invited to an interview with the franchisor.\u00a0 As with a regular job interview, this is designed to determine if your personality is the right fit for the business.\u00a0 At this stage, again, like a normal interview, you\u2019ll want to make sure that you know everything there is to know about the business in order to impress the interview panel.<\/p>\n<p><strong>Funding<\/strong> &#8211; If you\u2019ve smashed the interview out of the park, you will then receive a franchise offer pending funding confirmation.\u00a0 During this step, you\u2019ll need to show evidence to the franchisor that you either already have the funds available or have a loan promise from a bank or financer ready and waiting.<\/p>\n<p><strong>Contract<\/strong> &#8211; On approval of your funding status, you\u2019ll be sent a franchise agreement.\u00a0 I would absolutely always recommend hiring a solicitor to look this over for you to make sure that you avoid any nasty surprises further down the line.<\/p>\n<p><strong>Induction &amp; training<\/strong> &#8211; Once you\u2019re all signed up to your franchise business, and you\u2019ve handed over the <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchise-royalty-fees\/\">necessary fees<\/a>, your <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/the-difference-between-a-franchisor-and-franchisee\/\">franchisor<\/a> will usually schedule you in for an induction and a period of training.\u00a0 During this important phase, you\u2019ll be shown the ins and outs of the business as well as being briefed on all of the company rules and guidelines which you will be expected to follow.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"running-your-business\"><\/span>Running your business<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>So, congratulations on securing your new franchise business; now the hard work really begins!\u00a0 When getting started with your business, you\u2019ll have a fair few tasks ahead of you and, some of these are:<\/p>\n<p><strong>Getting the word out<\/strong><\/p>\n<p>Although you may receive some help from your franchisor, you\u2019ll be responsible for <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchise-marketing-how-best-to-succeed-with-these-marketing-tips\/\">marketing<\/a> your business and, depending on the nature of the franchise; you can do this through:<\/p>\n<ul>\n<li>Social media<\/li>\n<li>Local newspaper advertising<\/li>\n<li>On-site events<\/li>\n<\/ul>\n<p>It\u2019s essential that you start <a href=\"https:\/\/www.franchiselocal.co.uk\/news\/franchise-marketing-how-best-to-succeed-with-these-marketing-tips\/\">marketing<\/a> your business as early as possible to drum up interest long before you open the doors for the first time.<\/p>\n<p><strong>The people part<\/strong><\/p>\n<p>If the nature of your business means that you can\u2019t get started by yourself, for example, a fast-food chain or store, then you\u2019ll need to hire staff to help you get started.\u00a0 As with your marketing, you can do this through social media and advertising in your local newspaper as well as online recruitment sites.<\/p>\n<p><strong>Supply and demand<\/strong><\/p>\n<p>You\u2019ll be responsible for ensuring that you have all of the equipment, materials and products for your business.\u00a0 In most cases, your franchisor will already have suppliers in place so, you\u2019ll need to familiarise yourself with these and make sure that you have enough stock for when you open.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"work-it\"><\/span>Work it<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>During the day to day running of your business, you\u2019ll be keeping a lot of balls in the air, and you can expect to be kept busy with several tasks, including:<\/p>\n<ul>\n<li>Inventory and stock ordering<\/li>\n<li>Recruitment<\/li>\n<li>Management of employee rotas<\/li>\n<li>Management of payroll<\/li>\n<li>Book-keeping (although you\u2019ll probably want to hire a professional for this)<\/li>\n<li>Paying of bills<\/li>\n<li>PR and advertising<\/li>\n<li>Troubleshooting<\/li>\n<\/ul>\n<p>As your business becomes more successful, you\u2019ll be able to hand over the reins of some of these tasks to your employees but, to begin with, you probably won\u2019t have the budget for this.\u00a0 This means that you can expect to be working some crazy long hours and will literally be living and breathing your business for it to be a success.<\/p>\n<h5>Conclusion<\/h5>\n<p>So, how easy is it to buy and run a franchise?<\/p>\n<p>While the process of signing up and getting started with your business may be a little time-consuming, it is relatively easy as you\u2019ll get a lot of help and support from your franchisor if you\u2019ve chosen wisely.<\/p>\n<p>When it comes to running your business, you\u2019ll still receive support from your franchisor, but it will be down to learning on your feet and putting in the hours and commitment necessary to make your franchise work.<\/p>\n<p>The great news is that you\u2019ll have guidelines in place to keep you on the right path and the benefit of an established brand behind you which means that, as long as you\u2019re prepared to put in the work, buying and running a franchise is, in fact, pretty darn easy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you\u2019re asking this question, there\u2019s a pretty good chance that you\u2019ve been toying with the idea of leaving the 9 to 5 behind to run your own business for a while. For many people, owning their own business is little more than a pipe dream as they feel that the expense and risks are [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":10393,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[29],"tags":[],"class_list":["post-10392","post","type-post","status-publish","format-standard","has-post-thumbnail","category-tips-advice"],"acf":[],"jetpack_featured_media_url":"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2021\/08\/How-Easy-Is-It-To-Buy-and-Run-a-Franchise.jpg","_links":{"self":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts\/10392","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/comments?post=10392"}],"version-history":[{"count":0,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts\/10392\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/media\/10393"}],"wp:attachment":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/media?parent=10392"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/categories?post=10392"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/tags?post=10392"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}