Why Franchising Has To Be Complex

Latest Advice

Of course franchising should be complex. It is intended to be your future; it’s not the start of a new hobby or retirement filler – it’s where you plan to be for a good number of years. Certainly the motivation for seeking a franchise will differ from individual to individual but the underlying situation doesn’t change – you need to get it right. We are not seeking to be off-putting by highlighting the complexities and, in fact, it probably is more straightforward than it may first seem. However, your to-do list will depend on the specific opportunity you are pursuing. If we take a look at some items you should consider, we can quickly see that some may not even need to be on the list at all.

Choosing your premises

Does your chosen franchise have opportunities in the area of your choice? If not, are you prepared to relocate? This is naturally an early discussion item as it sets the scene for many of the decisions that follow. It may be that the franchise in question is non-territorial and if that’s the case, then the problem evaporates. Having resolved any territory issues, that naturally leads us to talk about premises – this being the specific location and address from where your franchise will operate. If it is home-based, the need for an extensive location search just disappeared. One less item!

On the other hand, if your business will need office, store front or even warehouse facilities, the review process takes on a different perspective. The search for suitable premises – remember the old adage that it’s location, location, location that drives success – might even come into play. If you have to conduct a search for the elusive perfect location, then the aspect of licences and permits may come into the picture. It is always important to build in a suitable time frame for the premises search and any permit requirements that may be needed. It is best to work on the principal that it will definitely take longer than you think.

While we are discussing the premises aspect, make sure that your plan takes into account potential expansion. If your franchise grows, as we all expect, can the present premises cope with the expanded volume? On the one hand, an early relocation due to growth would be a great situation, but on the other hand, potentially a costly and time-consuming situation.

If premises are involved, then almost certainly there will be a need for signage in one form or another. Quite often this in itself can be an item that is subject to regulation and more permits may be required.

Do you need staff?

Other items on the list that might disappear depending on the franchise model are staff and management. The type of franchise will determine how you handle this category. Some franchises are literally a one-person operation – if so, it’s one less item to concern yourself with. On the other hand, if you are looking at retail or manufacturing, certainly there will be a need for some members of staff. You need to be aware of what people and talents might be available in your immediate area. As with the search for the right location, the search for the right people may also take longer than expected, so allow sufficient time to complete the hiring process.

We can start to see that a homebased franchise has vastly different characteristics and needs to be one that has a distinct location, premises and staff. These distinctions may even be a determining factor as to which direction your opportunity search takes you.

In the money

Home-based or otherwise, there are some startup matters that will be common to all opportunities. Financing is not only a common element, but a basic one that needs to be addressed early in the search process. The type of franchise being reviewed will determine the capital required, and the franchisor will be able to advise on the specifics. It may be that the franchisor is also in a position to finance a portion of the fee and startup expenses, therefore always make it a point to ascertain what financing is available either from the franchisor or a third party that specialises in franchise financing. When we talked about allowing adequate time to get started and assuming it takes longer than planned, it is prudent to take the same approach with financing – that is, it will take more funds than you initially expect.

There is much work and due diligence to be undertaken when you set out to acquire a franchise. It is certainly crucial but not necessarily a daunting issue. Where franchising is regulated, then the franchisor will have done much of the ‘homework’ for the potential franchisee in preparing a suitable disclosure document. This will contain information and guidelines as to how to approach many of these research areas. It must also be remembered that the franchisor is a valuable information source as you are most likely not the first new franchisee that they have acquired – they have been there and done this many times. Therefore, draw on their resources to make acquiring a franchise a straightforward and timely process.
The benefits of owning and operating your own business, especially a franchise, are manifold and always enhanced by solid due diligence at the outset.

About the author

David T. Banfield received his professional credentials in banking and credit management in the United Kingdom, where he held positions in both the banking and factoring industries. Since that time he has held various senior management positions in the international banking and finance area in many different countries.
In 1991 David joined The Interface Financial Group as President and has been responsible for global franchise development, taking the organization from a one-franchise operation to their present 9-country operation.

David T. Banfield, President, The Interface Financial Group,
Email: dtb@interfacefinancial.com
Phone: +905-475-5701, Ext. 2

For further information on Why Franchising Has To Be Complex
global franchise picks

franchise directory

  • TaxAssist Accountants

    Business & Professional Services, Financial Services, <100K, Featured

  • Cafe2U

    Food & Catering, Coffee, Take-away, <100K, Featured

  • 0800 Pizza

    Food & Catering, Fastfood, Pizza, Take-away, Featured

view more
Connect with Linkedin Logo
Global White Logo Click Here

other franchises you may be interested in

Close button

WHAT DO WE USE YOUR INFORMATION FOR?

Any of the information we collect from you may be used in one of the following ways: To personalize your experience (your information helps us to better respond to your individual needs) To improve our website (we continually strive to improve our website offerings based on the information and feedback we receive from you) To improve customer service (your information helps us to more effectively respond to your customer service requests and support needs) To process transactions your information, whether public or private, will not be sold, exchanged, transferred, or given to any other company for any reason whatsoever, without your consent, other than for the express purpose of delivering the purchased product or service requested. To administer a contest, promotion, survey or other site feature To send periodic emails The email address you provide for order processing, will only be used to send you information and updates pertaining to your order. Note: If at any time you would like to unsubscribe from receiving future emails, we include detailed unsubscribe instructions at the bottom of each email.

HOW DO WE PROTECT YOUR INFORMATION?

We implement a variety of security measures to maintain the safety of your personal information when you place an order or enter, submit, or access your personal information We offer the use of a secure server. All supplied sensitive/credit information is transmitted via Secure Socket Layer (SSL) technology and then encrypted into our Payment gateway providers database only to be accessible by those authorized with special access rights to such systems, and are required to keep the information confidential. After a transaction, your private information (credit cards, social security numbers, financials, etc.) will not be stored on our servers.

DO WE USE COOKIES?

Yes (Cookies are small files that a site or its service provider transfers to your computers hard drive through your Web browser (if you allow) that enables the sites or service providers systems to recognize your browser and capture and remember certain information. We use cookies to help us remember and process the items in your shopping cart, understand and save your preferences for future visits, keep track of advertisements and compile aggregate data about site traffic and site interaction so that we can offer better site experiences and tools in the future. We may contract with third-party service providers to assist us in better understanding our site visitors. These service providers are not permitted to use the information collected on our behalf except to help us conduct and improve our business.

DO WE DISCLOSE ANY INFORMATION TO OUTSIDE PARTIES?

We do not sell, trade, or otherwise transfer to outside parties your personally identifiable information. This does not include trusted third parties who assist us in operating our website, conducting our business, or servicing you, so long as those parties agree to keep this information confidential. We may also release your information when we believe release is appropriate to comply with the law, enforce our site policies, or protect ours or others rights, property, or safety. However, non-personally identifiable visitor information may be provided to other parties for marketing, advertising, or other uses.

THIRD PARTY LINKS

Occasionally, at our discretion, we may include or offer third party products or services on our website. These third party sites have separate and independent privacy policies. We therefore have no responsibility or liability for the content and activities of these linked sites. Nonetheless, we seek to protect the integrity of our site and welcome any feedback about these sites.

CHILDRENS ONLINE PRIVACY PROTECTION ACT COMPLIANCE

We are in compliance with the requirements of COPPA (Childrens Online Privacy Protection Act), we do not collect any information from anyone under 13 years of age. Our website, products and services are all directed to people who are at least 13 years old or older.

ONLINE PRIVACY POLICY ONLY

This online privacy policy applies only to information collected through our website and not to information collected offline.

TERMS AND CONDITIONS

Please also visit our Terms and Conditions section establishing the use, disclaimers, and limitations of liability governing the use of our website at globalfranchisemagazine.com/terms-conditions

YOUR CONSENT

By using our site, you consent to our online privacy policy.

CHANGES TO OUR PRIVACY POLICY

If we decide to change our privacy policy, we will post those changes on this page

CONTACTING US

If there are any questions regarding this privacy policy you may contact us using the information below. All correspondence relating to the Website should be sent to: Global Franchise 21/23 Phoenix Court Hawkins Road Colchester Essex CO2 8JY Email: subscriptions@aceville.co.uk