Common Questions About Franchising, Answered
If you’re thinking about buying a franchise business, then you are likely to be scouring the internet looking for any information you can find. Going into such an exciting new venture is certainly a big decision, and you need to know the answers to all those all-important questions currently running around in your brain.
Thankfully, we’ve collated the most common questions about franchising and answered them, so that you can spend a little less time searching and more time putting together that franchise business application.
What are the best industries?
At a broad level, the most popular industries in the UK are food, home services and retail. Home service franchises include electrical, home care and cleaning. Retail services encompass both in-store and online, and food franchises include fast food chains, cafés, shops and restaurants.
These industries are no surprise: we all eat and shop, and we rarely have time for DIY. Services that provide specialist cleaning and restoration come in handy too, particularly when there is a large amount of damage caused by extreme weather conditions.
Although these are seen as the best industries, it is important to remember that location is also a significant factor in the success of a franchise business.
Where is off-limits for a territory?
The answer to this question will depend on if there is an exclusivity clause in the franchise agreement that you sign. Some franchisors will include them, and that will prohibit them from selling another franchise in the same territory.
This can prove beneficial; another competing organisation may harm the existing franchise business. However, there are numerous franchises that can easily support multiple businesses within a territory. For example, how many times have you passed a McDonalds only to see another one a few minutes later? Because many of the territories in which they operate have an incredibly large market share, in this particular case there is a need for multiple franchises.
How extensive is the marketing?
As you will be buying a franchise business, the franchisor will provide marketing support. How extensive it will be depends on the budget they have set aside for it. One thing that is for sure is that it will not be the same as if you were setting up your own business – there is an already established brand which the marketing will build from.
Some of the marketing will crossover with the franchise, which can be particularly useful if you are not an expert. However, it is best to know what you are talking about; read up on SEO, social media, offline advertising, PPC and email marketing, as these are the initial elements you can expect to implement in any franchise business.
How can you spot a good opportunity?
To recognise a valuable franchising opportunity, it is imperative that you do your research in every area. You already know the most popular industries, and you can use the International Franchise Association’s directory to search according to industry and investment amount.
A key indicator of a good opportunity is one with a strong and positive brand recognition – have a look at what their customers say on social media, and how the franchise responds.
You can also find out how the owners of that franchise have found their experience of the business, by either asking them directly or looking at the franchise’s testimonial page. Rainbow’s Success Stories page allows you to picture what a future with us might look like. Our specialist cleaning and restoration services make a particularly good franchising opportunity, given the ongoing extreme weather conditions the UK is facing.
To find out more about the franchising opportunities we have available, head over to our Next Steps section to book in a call.