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Researching Franchise Opportunities

By: Nick Strong Click author's name for more of his/her articles

During times of financial difficulty many are contemplating what they might do with their futures. Often we are driven by motives of ambition, redundancy or sometimes retirement preparation and contemplating franchise business as a route to fulfilment. Obviously self employment through franchising is not right for everyone.

Below are some pointers for deciding on the right franchise for you. The tips will help you decide if in fact franchising is right for you or not.

1. Determine what it is you enjoy doing and what your strengths are. Making a major lifestyle change will usually work the best when your work is focused around doing what you do best and your interests.

2. Talk to your partner or spouse and tell them about you desire to build your own business. Make sure that the people that could be most affected by any move in your employment are clear on your reasoning. Make sure that those close to you will be there for you financially if necessary but more importantly, emotionally.

3. Understand that business is hard work and can have its ups and downs. Replicating a proven system is what franchise business is all about so this helps to reduce the downs and maximises the ups. You can see why its so important that you want to follow a system that has been tried and tested.

4. Visit information rich sources online such as franchise directory sites and franchise exhibitions where you can study information about franchising and genuine franchise business options that could be of interest to you.

5. Make an appointment to visit the franchise companies that interest you the most. Meet the key staff that would support and provide training to you. Do you get on well with them? Could you work with them? Does the visit create confidence in you?

6. Obtain permission to speak to some of their franchisees. Chat with them and ask about their experiences. Ask questions such as, are you happy with the franchise? Do you make a profit? How does the franchisor support you? Has the recession affected your business sales or profits? Would you buy this franchise if you were me?

7. Having completed your research, decide which franchise systems are of the most interest to you. Make a short list.

8. The next step is to speak to a lender. Ask the bank for a report of what they know about the franchise systems you are interested in. Lenders tend to keep records about franchises they know about. From this information you can gain an independent report about the bank's opinion of your short listed options.

9. Often you will need to borrow money to start a proven franchise and for this banks may lend up to 70%. This is by virtue of the fact that over 90% of UK franchisees run their businesses at a profit according to the British Franchise Association National Franchise Survey which gives the banks the confidence to lend to first time franchise business owners.

10. The final step will be to pay careful attention to the franchise contract which your chosen franchisor will present you with. The franchise contract rules the agreement to trade between the franchisor and yourself. Consulting a British Franchise Association accredited lawyer is highly recommended.

When you have completed the above steps you will be in a position to make a choice of which franchise suits you best. It will then fall to you and the franchisor to sign contracts, pay fees, book in for training and agree on your franchise business launch programme.

Don't be rushed, decide on the best franchise to suit you and then work hard with your franchisors and customers support to build your own successful business.

Article Source: ABC Article Directory

About The Author: Nick Strong is Managing Director of SelectYourFranchise.com and is one of the leading experts to the Franchise Market in the UK.

Visit Franchises for Sale site to find out more about Select Your Franchise.