Small Business Franchise

Are you considering a small business franchise as a option of starting a business? Well you have come to right place.Here you will find my personal story that combines real facts with genuine experiences to give you a better insight into a franchise business.We will start with the basics questions for those of you who are not familiar with a franchise,we will then proceed further and cover the Pros and Cons of a small business franchise. Towards the end you will have the option to read for yourself my own personal franchise story and use my experience to make up your own mind to see if a franchise is the best option for you.

Small Business Franchise Start

So what is a Franchise? A Franchise is a successful established business that is duplicated exactly the same way by the Franchisee (you) in return for a Franchise fee.You get the tried and tested business system for your chosen franchise and all that's left is for you to focus and apply your own hard work, drive and passion.

All the pitfalls should of been eliminated by the franchiser (owner) leaving you with a clear and successful start .Their are many types of small business franchises ranging from the typical fast food franchise to pet shops supplies...indeed something for everyone.

A good place to start is whichfranchise.com, also a good magazine called THE FRANCHISE available at any local newsagents is worth browsing through they also have a website which is British Franchise Magazine. You'll be glad to know that some libraries stock it for free so you don't even need to buy a copy.Finally check out the British Franchise association at (British Franchise Org) all genuine franchises register with the BFA and have chosen to be vetted against a strict code of business so definitely a must if you are serious about franchising.

A Few Other Points

After purchasing a franchise you will be required by the franchisee to follow their operations manual... "What's that" I here you ask... a operational manual is the way they do things and conduct their business successfully.In other words their success recipe everything that they have done to make the business a success.

It sets out how they would like the franchise operated...What you can do and what you can't do Basically their operational manual is a tried and tested format that you must follow and stick with to achieve the maximum success for your small business franchise.Also be aware that a ongoing fee is payable usually every month this is the management fee and can go up and down according to your turnover.

Oh yes please let me clarify these terms which I found a bit confusing before I go any further.

Franchiser is the person or company with a successful business system

Franchisee is the person (you) or people that want to replicate the successful business... Got it...Good!

Pros

Much safer than starting your own business from scratch
Benefit from an already established, successful running business
Very good chance of success
Much easier to get financing for through banks For advice on funding click here
Access to Knowledge, skills and problem solving
Use of brand name e.g. (McDonald's) buying power, product research
Support from other franchisees who have been there
In business for yourself but not by yourself

Well I am sure if you've skimmed your eyes over the Pros it's looking quite good....

But It's not that simple as just handing over your hard earned money to the franchiser... turn up for work and start making money.You have to work very hard as with any business but the main key points being that you are provided with a successful business system, brand name awareness (in some cases) and also a solid support network but ultimately you determine your own success.

Cons

Ok... let's take a look at the Cons for owning a franchise business

Normally a small business franchise starts from anywhere from £3000 to £50.000
Monthly management fees payable for ongoing support/services...yes every month
Franchiser ultimately has full control
If you are an entrepreneur, little or no chance to do things your way
You really have to do it by the book and follow the operational manual
Success is not guaranteed
Franchise fee is not refundable
Must follow the business system

As you can see there are a few points to consider but a small business franchise offers you a solid start into business with a lot of the risk taken out. This will save you time and money with the added support of the franchiser (owner) and other franchisee.Okay... I've covered the basics here and hopefully in the process given you some food for thought or at least answered some of your questions.I operated a franchise for a couple of years and it was an interesting experience that I would like to share with you.

My Franchise experience part 1] [ Part 2]

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