Owning a franchise is not a get-rich-quick scheme. Franchising takes time, dedication and a lot of hard work before you can reap the rewards – the same qualities that any other start-up business requires.

One of the best things about franchising is that you have the support of a brand name behind you. Not only does this mean that you do not have to establish your brand, but you can also benefit from the advice, training, marketing and design from the organisation you are franchising from.

If you are looking at buying a franchise in Great Britain, many companies belong to the British Franchise Association [BFA] – this is an accreditation body and ensures that it’s members adhere to a specific list of given guidelines. If the prospective franchise company does not belong to the BFA, it isn’t necessarily a bad sign – there are reputable franchises that are not part of the BFA – however we would advise caution. If in doubt, either walk away or seek professional advice to ensure that you don’t end up with a lemon.

The decision to buy a franchise should not be taken lightly. So, here at MoneyTowers we have put together our top 10 considerations that should be taken into account before you buy your franchise:

1. Viability
Is the company viable? If you are looking at a new franchise company, or one which has a good track record abroad and is looking to bring the franchise to the UK, check whether the franchise is viable. Just because that particular franchise has worked abroad does not mean it will work in the UK. With a new franchise company, think about whether the idea and product will work.

2. Legalities
There are plenty of scams around, particularly in the work from home arena. A lot of the work from home options are pure scams and if you are looking at one of these, take great care as many are designed to extract as much money from you as possible in a short a space of time as possible. Check that the franchise is legal and ethical. If in doubt, walk away.

3. Success Stories
If possible, look for a success story. Find out about other franchisees in the country and if possible, talk to them. Ask them how they made the franchise successful and what sorts of costs and revenues they need to keep the franchise a successful one.

4. Finances
Ask to see the accounts of the franchisor. This will give you an overview of the company and how it works. If it isn’t successful, walk away. Check what their financial predictions are and do your own calculations to check that they stack up against the figures you have been given. Check their marketing, advertising and training budgets and ensure that the company is capable of meeting your expectations and it’s promises in these areas.

5. Compare and Contrast
If possible, attend a franchise exhibition. This will give you a chance to compare the franchise you are interested in with others and check whether this franchise opportunity is really the right one for you.

6. Competition
Check your competition carefully. Is the product you are selling going to enter an already saturated market? Is your proposed shop going to have a lot of competition in the area? Can you offer a unique selling point? How will you attract customers? Are there are other franchisees operating nearby who are successful?

7. Hard Work!
Do you have the dedication and time required for a franchise? A franchise is not an easy option – franchises can and do fail. They need a lot of hard work to make them succeed.

8. Budgeting
Many franchisors make it clear what sort of maximum revenues you are likely to make – take their advice into consideration and make sure your expectations are in-line with their experience.

9. Finances
Remember that the franchisor will require some form of payment so check your financial projections carefully to ensure they are realistic and have taken into account all the costs. Business plans are an excellent option so you know what sort of sales targets to aim for. In doubt, get your accountant or lawyer to check your plans and point out any areas that need improvement.

10. Training
Don’t worry if you find yourself struggling because you don’t have all the required skills. Few people take on a franchise cold and find they are able to cope with everything with ease – you may need to brush up on a few skills here are then. Don’t be afraid of asking your franchisor for help – they may be able to advise you or offer you more training in selected areas.

Popularity: 23% [?]