Business Franchise Information – What Do You Need To Know About Your Franchiser?

The first bit of business franchise information you need to discover will be “Is franchising the best option for you?”

Your business can grow in many ways. First of all, there is organic growth – or that which comes as a result of market expansion or from eating into a rival’s market share. Another option is to grow inorganically, by way of acquisition of a rival business.

Growth can also be defined in terms of whether it is in the same line of business or in a related field. An example could be that of a fabric manufacturer either ramping up capacity to produce more textiles, or entering into the arena of ready made clothing.

Interestingly, a lot of businesses also step into an unrelated field – the motivation in many such cases is to better utilize existing resources. A lot of new businesses have germinated this way, when the owners find that they have spare space, people or infrastructure which can be leveraged in a new business. Lastly there is the option of franchising.

We’d advise you to collect enough business franchise information to make a decision with a lot of care. Don’t jump into a totally new business just so that you can keep your staff busy. Every franchise opportunity is different, and brings its own set of challenges. The makings of a good franchiser are discussed below:

Keenness to do business: This will be apparent right at the negotiation stage itself. If you find that the franchiser is laid back or complacent, you’re better off without them. For a franchisee to make money, it is essential that the franchiser act as the driving force. A non-responsive franchiser company is better left untouched.

Adequate support: Since you’re entering unknown territory, it is the franchiser responsibility to ensure that you are adequately equipped to run a successful unit. And that means providing adequate operational training to your staff, implementing a solid marketing and communication plan for the brand and advising you on how to run a profitable franchise business. In fact, some franchisers help with the real estate decision and financing requirements too.


Financial soundness: That’s a tell tale sign, if any. Make sure you go over the financial strength of the franchiser company in great detail. Every franchiser will sell you the success stories of other franchisees – while you may listen to that with interest, you must also ensure that the principal company is itself strong enough to stand . Don’t assume that there’s always a sound company behind a strong brand.

Past history: A rapidly growing franchiser company might brag about how they’ve grown in recent years. That’s a red flag for you – numerous sign-ups are usually accompanied by a number of break-ups. Check how many franchisees have left the business, and what happened to them.

At the time of reviewing the terms of the franchise agreement, be sure to understand the implications of a separation. Some franchisers refund a part of the fee to the outgoing franchisee once they find a replacement. This is important business franchise information

Attitude of other franchisees: That sums it all up. Be sure to speak with at least a couple of existing franchisees to get their perspective on what it is like to partner with the principal. If they seem satisfied on the support they receive, as well as the performance of their business, the opportunity is probably worth your consideration too.

It is essential to be armed with the above business franchise information before you invest a dollar into your new franchise business.

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