1. Select the types of businesses that interest you and research the market in your area.

2. Check directories, franchise magazines and web sites and visit franchise exhibitions to establish relevant franchisor companies.

3. Check whether the franchisor is a member of a trade association and try to establish what sort of reputation they have.

4. Get as much information as possible from the franchisor about the operation – there is usually a detailed pack available.

5. Ask the franchisor for a list of franchisees to enable you to contact some to find out more about the operation of the business and their experiences of working with the franchisor.

6. Make sure you see the latest accounts from the company.

7. Prepare a detailed business plan, which should be approved by the franchisor, indicating what you would like to achieve.

8. Establish what the franchisor provides in the way of initial training, operations guidance and ongoing support.

9. As with any business, assess the amount of finance you will need and take advantage of free advice services offered by high street banks some of which have special franchise finance experts.

10. Consult a solicitor who is experienced in franchising work.

11. Look over any contract and franchise agreement documents with your solicitor to make sure that they are comprehensive and clear, and that they work for the benefit of you as well as the franchiso.r

12. Make sure you understand what restrictions are in place such as buying from specified suppliers, standard recruitment policy, territory you can operate in etc.

Do’s and Don’ts

Do:

Research your chosen area of business.

Seek help from experts.

Plan thoroughly.

Make sure you understand any restrictions placed on you by the contract.

Don’t:

Choose a business you know nothing about.

Be rushed into making a decision.

You under estimate finance needed.

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Information supplied by Business Insight
Central Library, Chamberlain Square, Birmingham. B3 3HQ
Tel: 0121 303 4531 Email: business.library@birmingham.gov.uk
www. birmingham.gov.uk/businessinsight
www.bestforbusiness.com
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