jabbahutt
|
 posted on 11/1/12 at 09:34 AM |
|
|
buying a franchise
Morning all
Seriously considering this avenue of employment as to be honest I'm fed up with grafting for a poor salary, no job satifaction etc. Does anyone
here own a franchise or have experience of them.
Just starting the research and would appreciate any knowledge of what to watch out for and common pitfalls.
Many thanks
Nigel
|
|
|
|
|
Norfolkluegojnr
|
| posted on 11/1/12 at 09:44 AM |
|
|
I Work for a franchisor matey, in fact my job is franchise recruitment. 
Ask away.....
|
|
|
jabbahutt
|
| posted on 11/1/12 at 09:54 AM |
|
|
I'm just after any general pointers of things to be aware of and common pitfalls people fall foul of. Also any good sources of impartial
information on starting out working for yourself and large trade show locations and times of year etc to look round various franchise options.
Any information most welcome
Thanks
Nigel
|
|
|
Norfolkluegojnr
|
| posted on 11/1/12 at 10:07 AM |
|
|
OK, well thats a wide range of stuff you're after, and as always the internet is your friend
Three most important questions to answer initially:
What can you afford to invest? (banks will offer funding, but usually only up to 70% of purchase price)
What kind of industry do you want to work in?
Can you commit to the franchise for a sustained period of time?
Get these points in order first, and it'll help you to narrow down the literally hundreds of options available to you.
Common Pitfalls (in no particular order):
Not enough research into the franchisor (this is the big one, research is key)
not enough start up capital
unrealistic expectations (either given to you, or misconstrued)
lack of drive
etc
BUT don't let these put you off - its all about being sensible, doing you due diligence and taking your time.
They key is be realistic with what you can do, and what you want to earn. Its not a passport to a goldmine future, but if you put in the effort you do
get the reward.
Shows - loads this year, and a few shortly:
Franchise Show - at the Excel, London, end of Feb
National Franchise Exhibition - Olympia London, mid march
There are also shows at Manchester GMEX, Glasgow, Heathrow, Earls Court, and Dublin, but i can't remember the dates )
I'll most likely be at the later ones, but the next two coincide with my son being born, so i'm unlikely to make an appearance
Have a look at the BFA (British Franchise Association) website: www.bfa.org any decent franchisor will be at the very least an associate member.
Don't go near anyone who isn't.
If you want some impartial advice, i'm happy to help. Its what I do, and i've been in the world a good few years now.
hope it all helps!
|
|
|
jabbahutt
|
| posted on 11/1/12 at 10:18 AM |
|
|
Fantastic that's exatcly what I'm after. I'm not thinking it'll be instant wealth and to be honest don't want it to
take over my every waking moment. I want to be my own boss earning a comfortable wage (£30k) but with the ability to alter my income by putting in
extra effort amd hours if I want to. I'd also prefer to be mobile therefore not requiring premises, instead travel to the client.
Will have a look at when the Manchester show is as that's close to me.
Best wishes with for the new arrival, enjoy every minute.
Many thanks for taking the time to type all that info in , it's much appreciated.
|
|
|
speedstar
|
| posted on 11/1/12 at 10:34 AM |
|
|
I know someone who packed in a £30k job and got himself a McDonalds franchise. He now own 4 of them and drives a 61 plate Maseratti...
|
|
|
jabbahutt
|
| posted on 11/1/12 at 10:41 AM |
|
|
I don't earn 30k that's the problem. I'm not greedy but the company I work for are hiding behind the old recession thing and
flogging it to death. Last years profits were up 40% all our targets met even though we're 3 staff down and our annual pay rise for 2012 before
tax is £500!
That in my mind is taking the mickey so I'm now thinking it's time to put all my effort into making money purely for me and mine rather
than lining some directors pockets.
|
|
|
mookaloid
|
| posted on 11/1/12 at 10:56 AM |
|
|
I am a Franchisee - 8th year of trading.
The key thing in my opinion is to realise that the only person who will make it a success is yourself.
Think of it as buying knowledge as to how to earn a living. It is very similar to starting up and running your own business but with a ready made
plan. Just as with starting your own business YOU are the only person who will make it work or not.
The advice above is good but also talk to lots of other franchisees in the business that you are interested in to get their views. Ask about the
levels of support and how many failures the franchise has experienced also ask if the income expectations are realistic.
You will generally buy a franchise area (postcodes) and there are differences between areas. Try to understand the differences in geographical areas
as it might work well in one area but not so well in another.
Finally beware the Franchise Salesman! - they are trying to sell you something so be sceptical about the forecast earnings. if they say you can
turnover £x in a year and make £y profit try working it out if you only turned over half or a third of £x and see if the figures still work.
I'm happy to answer any questions if you want to U2U me.
Cheers
Mark
"That thing you're thinking - it wont be that."
|
|
|
jabbahutt
|
| posted on 11/1/12 at 10:59 AM |
|
|
Many thanks for all the help and advice given so far. Quick question, how do you track down other people who've bought a particular franchise
to pick their brains? Is it through the franchise owner?
|
|
|
mookaloid
|
| posted on 11/1/12 at 11:17 AM |
|
|
quote:
Originally posted by jabbahutt
Many thanks for all the help and advice given so far. Quick question, how do you track down other people who've bought a particular franchise
to pick their brains? Is it through the franchise owner?
Yes and the franchise web site. The franchise owner will naturally tend to point you in the direction of the more successful franchisees but you
should try and contact a representative sample.
"That thing you're thinking - it wont be that."
|
|
|
designer
|
| posted on 11/1/12 at 11:17 AM |
|
|
quote:
Finally beware the Franchise Salesman!
Have to second that, and have to include Franchise Brokers, as my mate got his fingers burnt by listening to the 'experts'.
Always take advice from the Franchiser, not anyone 'advising'.
|
|
|
Norfolkluegojnr
|
| posted on 11/1/12 at 11:53 AM |
|
|
hope the franchise salesman comment wasn't aimed at me - certainly not what i do. I work for a franchisor in operations. Bringing on and
assisting new franchisees in setting up and running their businesses.
Mobile franchises - I work for a van-based company, so can comment there if you want any impartial info.
Good advice on speaking to existing franchisees - the franchisor will provide you with a contact list if they've nothing to hide.
U2U me if you have any specific questions, and i'll do by best to answer them.
|
|
|
designer
|
| posted on 11/1/12 at 11:59 AM |
|
|
No intention, just that my mate lost a lot of money; a lot more than he could afford to.
|
|
|
Norfolkluegojnr
|
| posted on 11/1/12 at 01:22 PM |
|
|
Cool. I'm one of the good guys 
|
|
|
mookaloid
|
| posted on 11/1/12 at 02:57 PM |
|
|
quote:
Originally posted by Norfolkluegojnr
hope the franchise salesman comment wasn't aimed at me
Of course it wasn't aimed at your good self
I don't know you or what you do.
I have however had experience of very overenthusiastic Franchise Sales people who seem more interested in selling a Franchise than picking the right
people to form a long term business relationship with.
Early in the thread you suggested that unrealistic expectations could be given and I agree having been on the receiving end of them.
No offence intended at all
"That thing you're thinking - it wont be that."
|
|
|
Norfolkluegojnr
|
| posted on 11/1/12 at 03:17 PM |
|
|
quote:
Originally posted by mookaloid
quote:
Originally posted by Norfolkluegojnr
hope the franchise salesman comment wasn't aimed at me
Of course it wasn't aimed at your good self
I don't know you or what you do.
I have however had experience of very overenthusiastic Franchise Sales people who seem more interested in selling a Franchise than picking the right
people to form a long term business relationship with.
Early in the thread you suggested that unrealistic expectations could be given and I agree having been on the receiving end of them.
No offence intended at all
We're all far to nice to each other
You're right - if the franchisor is more interested in sales than productivity, there is a problem/scam/pyramid selling scheme.
This is often highlighted by low investment & low management service charges. if the chunk the franchisor receives from the franchisee month on
month is small, whats the incentive to make them successful?
Finally a subject on locost I know something about! Hi 5!
|
|
|
mad-butcher
|
| posted on 11/1/12 at 07:30 PM |
|
|
Ok I ain't been self employed for several years, and certainly wouldn't go back to it, I just love being on this PAYE lark. Are you
looking at taking home £30K a year or earning £30K a year, Taxation and NI are totaly different for self employed, got a funny feeling that
you'll have to earn about £60K to take home £30K and on top of that credit rating companies don't like self employed or atleast
didn't when I worked for myself, good luck with it anyway Nigel
tony
|
|
|
JoelP
|
| posted on 11/1/12 at 08:11 PM |
|
|
as a teenager i worked in a dominos, the owner of the store was taking about £2.5-3k per week profit. No idea what he had to pay to Dominos
themselves, but i always thought that was a cracking wage he was on, since he didnt actually work in the shop. ISTR he only invested about £100k.
Beware! Bourettes is binfectious.
|
|
|
Ninehigh
|
| posted on 11/1/12 at 08:27 PM |
|
|
£30k earnings? Where do I sign?
(Psst. www.bfa.org is Bibles For America, you want www.thebfa.org)
[Edited on 11/1/12 by Ninehigh]
|
|
|
JoelP
|
| posted on 11/1/12 at 08:31 PM |
|
|
quote:
Originally posted by Ninehigh
£30k earnings? Where do I sign?
(Psst. www.bfa.org is Bibles For America)
[Edited on 11/1/12 by Ninehigh]
Do you have kids ninehigh?! Cos i find between them, the wife and the mortgage, 30k doesnt leave much change at the end of the year for toys!
Beware! Bourettes is binfectious.
|
|
|
Ninehigh
|
| posted on 11/1/12 at 08:52 PM |
|
|
quote:
Originally posted by JoelP
quote:
Originally posted by Ninehigh
£30k earnings? Where do I sign?
(Psst. www.bfa.org is Bibles For America)
[Edited on 11/1/12 by Ninehigh]
Do you have kids ninehigh?! Cos i find between them, the wife and the mortgage, 30k doesnt leave much change at the end of the year for toys!
I know. Now live on half. And work 16 hour nights for it, and all weekends so you never see what you're working for. I'll give a hoot
about pfr's and kpi's for enough money to actually live on!
Tbh I'd really like one of those bacon butty vans, I've seen a fair few that do good business
|
|
|
jabbahutt
|
| posted on 12/1/12 at 07:57 AM |
|
|
Thanks for all the input, goes to show you pose a question and all sorts of stuff you hadn't factored on comes to light. Much appreciated for
people taking the time.
That's why I asked you lot at the beginning of the process as if there are nasty suprises lurking that I hadn't considered I knew that one
of you would have had experience in this field and been able to assist.
Thanks again
Nigel
|
|
|
Norfolkluegojnr
|
| posted on 12/1/12 at 09:12 AM |
|
|
quote:
Originally posted by Ninehigh
£30k earnings? Where do I sign?
(Psst. www.bfa.org is Bibles For America, you want www.thebfa.org)
[Edited on 11/1/12 by Ninehigh]
Fair point - you think i'd know that being a BFA member!
|
|
|
mookaloid
|
| posted on 12/1/12 at 09:34 AM |
|
|
quote:
Originally posted by Norfolkluegojnr
quote:
Originally posted by Ninehigh
£30k earnings? Where do I sign?
(Psst. www.bfa.org is Bibles For America, you want www.thebfa.org)
[Edited on 11/1/12 by Ninehigh]
Fair point - you think i'd know that being a BFA member!
sorry but that's quite amusing
"That thing you're thinking - it wont be that."
|
|
|
adithorp
|
| posted on 12/1/12 at 10:23 AM |
|
|
quote:
Originally posted by Norfolkluegojnr
quote:
Originally posted by Ninehigh
£30k earnings? Where do I sign?
(Psst. www.bfa.org is Bibles For America, you want www.thebfa.org)
[Edited on 11/1/12 by Ninehigh]
Fair point - you think i'd know that being a BFA member!
It's got to be the oldest franchise out there... though plenty consider it a pyramid scheme! 
(guess thats me going to hell)
"A witty saying proves nothing" Voltaire
http://jpsc.org.uk/forum/
|
|
|
