Franchise store ownership: where to start
Things to know about a franchise before joining.
Thinking about franchise opportunities? Whilst it’s a good idea to start the process, it should never be something that is done without first considering all the key questions…
- How much will joining a franchise cost?
- How much training will there be?
- How much time needs to be invested?
- What does it actually take to run a successful retail franchise?
There are also important questions to ask about the franchisor too… for example, what do they actually provide for the franchisee in terms of technology, systems, support, etc? And what about the delivery model? With symbol stores for example, you would have to go to wholesalers, whilst with a leading UK-wide franchisor like One Stop, you simply place your order and it’s job done.
You can find out more about franchising with One Stop here. And, for more clarity on franchise opportunities, read on…
You’ll be playing a vital part…
Local shops are now providing over 600,000 home deliveries a week in their communities
Is opening a franchise store right for you?
First of all, before you decide whether to become a franchisee or not, ask yourself if opening a franchise store is right for you. Not everyone is the right fit to run a franchise business, whilst for some, it makes perfect sense. Think about the following…
- Affordability – when starting up a franchise, you’ll typically have a franchise fee, set up costs as well as legal fees to consider. It’s important to note that these kind of fees will differ, depending on the size and stature of the organisation you’re partnering with, so it’s important to consider your potential franchisor very carefully.
- Current owners – think about what kind of insight you want to gain from your potential business partner. Can you learn from existing franchisees within the network? It’s a good idea to find out more about them, why they joined and how the franchise has benefitted them.
- The agreement – ensure you look into the length of the agreement before you sign up and, more importantly, the conditions of selling on (or extending) your contract. Be clear on the operational rules and ensure they work for you. Also, understand the trademarks, patents and signage that will adorn your store.
- Training – this can differ depending on the organisation you are joining – from three days to three months of on boarding. In addition, it’s important to understand things like ongoing training and support, as different franchisors have different methods. For example, some will use video calls, some will prefer telephone contact, whilst others will opt for face-to-face interaction. Above all, ensure your franchisor has the best interests of you and your store in mind… to that end, if training is not continually refreshed and tracked, are they the right business partner for you?
- Criteria – do you tick the franchisor’s boxes to run a convenience store franchise? Many franchises have specific requirements around things such as location, store size, sales volumes, current contract, etc.
- Due diligence – how much do you know about the network? Is it a company you’ve heard of? Is it a brand your customers would know? It’s vital to gather as much information as possible in advance and then narrow down your search so that you find an organisation that is sustainable, fits your criteria, is affordable and, crucially, is as passionate and committed to success as you are.
Regular customers, right on your doorstep…
24% of convenience store customers visit every other day
Where can you go for advice and support?
Before you decide to choose a particular franchisor, it’s crucial that they have the right kind of support network in place to help you succeed with your business. Don’t be afraid to ask them questions and find out all you can. After all, this is your future we’re talking about here. As such, you need to be 100% certain that whoever you decide to partner with will have your best interests at heart and be as committed to your success as you are.
It’s also a good idea to think about getting a little extra support from someone like the British Franchise Association. Because franchising is not government regulated in the UK, there is no single organisation that regulates franchises. The British Franchise Association seeks to fill the void, as a not-for-profit trade association that assists both franchise businesses as well as individuals that are interested in franchising to start their own business.
You can find out more about them here: https://www.thebfa.org/
Alternatively, if you like what you’ve read so far, don’t hesitate to get in touch with our team of experts – we are available to assist you in finding the answers you might be searching for.
In conclusion. Franchising – do you tick the boxes?
Franchising can be a hugely successful undertaking – for both franchisor and franchisee alike. However, it pays to take a step back before making any hard and fast decisions and ask yourself whether it is right for you. It’s certainly a business model that can (and does) bring huge success to those with the drive, commitment and capacity to be the best they can be. So, keep asking yourself those key questions and continue to look into all the positives (and negatives) of joining a franchise. The next step towards your business’ success could depend on it.
Alan Fincham – One Stop franchisee, Attleborough
“Since joining One Stop I’ve been able to completely transform my convenience store. The refit has attracted more customers, meaning more sales and bigger basket spends. Not only do you receive this amazing support when starting up, but we also have a dedicated Business Development Manager, who visits once a month. Along with a help desk to assist with issues like tills or IT support, we’re truly able to perform to our best.”
Claim your FREE ebook now!
Want to see how we could help you grow your business? We’ve created an essential ebook filled with hints, tips and a whole lot more to help you get ahead and stay there. Best of all, it’s absolutely FREE! Download yours today!