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Does anyone here run a franchise?

Discussion in 'Franchising' started by Emma, Jul 30, 2008.

  1.  
    Duncan

    Duncan Moderator Staff Member Premium Member

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    50 questions to ask a franchisor - Bfa

    Questions to ask. You need to know why you are asking them and how to interpret the answers.

    All regulatory or pseudo regulatory bodies are less than perfect.

    Caveat Emptor applies as much to franchises as any other major purchase or investment.
     
  2.  
    captaincloser

    captaincloser View from the Crow's nest

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    The known fact, as I know it, is that people who buy into a franchise have a very much better chance of still being in business after 12 months than the guy who goes it alone. The guy who goes alone does have his own business and can fol at will.

    But the other side of the coin is that old guys like me who have seen the franchise model mutate over many years would tell you that the combination of the bank loan and the ruthlessly one sided franchisor terms (backed up to the hilt by the BFA) means the franchisee these days, the typical franchisee coming out of middle management to buy his business off the shelf is a small pawn in the franchise world and very much holds employee status no matter what the glossy brochures tell you.


    Plus,they are not starting a company from scratch.They are opening a branch of Someone else's company, being given usually a uniform and a title and led to believe they are a groundbreaker when in fact they have taken on a ball breaker of a JOB.

    Ask around, the dream soon collapses into reality. Many do make good money but they put in horrendous hours and must sometimes wonder what keeps their noses to the grindstone ?

    The answer of course is the criminal terms in many of the franchise agreements. Read the small print and see how much of an entrepreneur you really are. You simply cannot close up an walk away. No Sir, you have an agreement that will be shouted to you in a court of law if you want to stop being the employee.

    We all have a view. Macdonalds and other big fry (get that pun !) are fine and not what I am talking about. Most franchises for me are smoke and mirrors and the BFA are just blowing poison sooty smoke up their own derrières day in and day out. A dysfunctional lads club with a crafty line in appearing the punters friend but being backed by the bookmakers all along. Don't be a mug punter with franchises is the answer. Keep your powder (cash) dry.
     
  3.  
    ISS

    ISS Son of Victor Meldrew Premium Member

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    The thing with the bigger franchise opportunities that we all agree are "ok and sound" is that the sheer cost of getting involved is prohibitive to 99.9% of people.

    They do work well and there are great profits to be made however they also reinforce the old adage that money makes money.
     
  4.  
    MCSFranchise

    MCSFranchise Applicant

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    I think the one main point would be that franchising is not for everyone, there are some people (not many) who have the money (lots and lots) to do it a lone and through money at there business to make it a success, and to make it a known brand, don't forget one of the many reasons you buy a franchise is brand awareness, that pure fact that the company you are buying into has been trading for some years and has a "reputation" that the new franchisee buys into, there are many companies out there that have been started for 1 year and franchising which I disagree with as they have no reputation or experience.

    Also your point about buying a job. I see and slightly agree with that but there is more to it that just buying a job, you are buying security and in many occasions flexibility. There are many part time and home based businesses you can buy into where that main work would be completed at head office by the franchisor thus giving you time run and grow your business plus the flexibility to fit around you life style (to a point) and not having to answer to a boss.



    MCS Franchise - cleaning franchise, business franchise
     
  5.  
    ISS

    ISS Son of Victor Meldrew Premium Member

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    You think it takes loads of money to run a business successfully? Franchising is by no means the largest sector in business MCS. You don't give credit to people for their ability to set up, run and market their own businesses.
     
    captaincloser likes this.
  6.  
    MCSFranchise

    MCSFranchise Applicant

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    ISS, It certainly take a good amount of money and time to have a successful business. Franchising is fast growing with more and more companies seeing franchising as the best way to expand. I am sorry if I offended you or anyone for perching that people cannot start up and run there own business, all I am saying is that it is sometimes a better choice to buy a franchise rather than to start up them selves from scratch.



    http://www.mcsfranchise.co.uk/
     
    Last edited by a moderator: Mar 18, 2014
  7.  
    ISS

    ISS Son of Victor Meldrew Premium Member

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    No, no it doesn't. You can start a successful business with minimal money.

    Offended? Heck not a chance mate I'm disagreeing with you. :lol:

    Disagreement is not offence. Honestly. Are we really at that point now in this country? Gah it gets worse....

    I'm just blunt

    Jon
     
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    MCSFranchise

    MCSFranchise Applicant

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    Hmm, I have tried several business and spent a reasonable amount of money before pulling the plug. If you feel that you can start a successful business with minimal money then that's great, can you tell me what they are so I can try ;)
     
  9.  
    ISS

    ISS Son of Victor Meldrew Premium Member

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    Ask the people on this forum and see how many of them are franchisees, you'll find that over 90% aren't but they all run businesses.
     
  10.  
    MCSFranchise

    MCSFranchise Applicant

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    I have both/all. I have a successful business and franchising it, also have a franchise in another industry.
     
  11.  
    captaincloser

    captaincloser View from the Crow's nest

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    I know of franchisors who manipulate these figures to show that it is the franchisor who stays in business far more than the average business. That is not the same as saying that franchisees have the same success rate.
    Many franchisees are in and out in a flash same as other budding entrepreneurs. The safety net is a bit of a false bottom in many cases ?

    Quite often the burn rate is very high. Also when looking at any figures it's important to differentiate between multi national franchises like subway and McD and the SME franchises for oven cleaning, domestic cleaning and printers for example.

    Skewed figures are a feature of franchising that the BFE do nothing about and it's down to the potential franchisee to get to the bottom of the history of the company/franchisor that they are thinking of buying a job/business from.

    most should agree with this.
     
    Last edited by a moderator: Apr 10, 2014
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    Piotr Sylwester

    Piotr Sylwester Applicant

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    Well, I'm having my personal franchise of the online business for 2 years now, and I can't complain at all.
     
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    Callum Short

    Callum Short Applicant

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    Hi,

    Franchising is a great industry with many brilliant business opportunities. As the industry grows however, we are seeing more and more low quality franchises. If you are considering buying-in to a franchise, I recommend reading the following article on how to choose a profitable franchise

    Hope I helped :)
     
  14.  
    Knape

    Knape Applicant

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    Hi!

    I agree with Callum Short above - we are seeing more and more low quality franchises. It is important to look for something with solid bases and good marketshare. You may probably think, that if they have big market share, there will be no more space for you, but you're wrong. I know it from my own life :) I've joined language school franchise with a solid base and as for today, I'm happy. But I know, that it is important to choose a franchise which care about its partners - not just want to get paid.

    Look in internet for an opinions, try to talk with those people in other cities - you will get best opinions!
     
    Last edited by a moderator: Mar 25, 2015
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    Xfranchisee

    Xfranchisee Applicant

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    Hi all,

    Having been a licencee once and a multi unit franchisee twice with mixed results and views. I do highly endorse this sector. I would however highly recommend that any one looking at this as a route to self employment conducts thorough research and business planning.

    There are three socially focused organisations I know of in the UK that can provide support advice and guidance in different forms at no cost to get you started.

    Ewif supports women into franchising
    Franchisingworks supports workless ness and unemployed people into franchising with free find out about franchising workshops
    Bfa is the UK voluntary standard. Has lots of tools and resources

    My tips (learn from where I failed!)
    - always seek professional unbiased advice
    - research and test market (prove it to yourself)
    - speak to a random selection of franchisees, make sure you can choose these.
    - start with an exit strategy.
    - accept that failure can happen but share and learn from this.

    Hope this helps.
     
  16.  
    Maevla

    Maevla Administrator Staff Member

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    Some good points franchisee - welcome to the forum :)
     
  17.  
    James Poet

    James Poet Applicant

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    I owned a franchise and there is lots of great advice here.

    Always speak to other franchisees and not just the ones they suggest you call....

    And stay well away from BBX UK.

    I had a BBX UK franchise and it has proved the worst decision I have ever made.
     

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