In general, economic downturns often result in an increase in franchising activity as people use redundancy as an opportunity to invest in an established business and become their own boss. This certainly seems to be the case at the moment, with the Franchising Team at Fraser Brown Solicitors seeing a significant increase in enquiries from people both looking to purchase a franchise and franchise their own business.
Franchising can be an effective way to grow a business and a seminar being held by Fraser Brown in conjunction with Tenon, HSBC and Business Link, will give people the opportunity to find out more about the options.
Patrick Wood, Head of Franchising at Fraser Brown, explained the reasons behind the event. “Despite the economic uncertainty, many banks are still willing to lend on franchising activity, making it an attractive option for those looking to raise capital or build their business.
“This seminar will allow people to find out about the funding on offer to prospective franchisors, the accounting procedures and controls and the legal frameworks that are required.”
There are many aspects to think about when considering franchising and the most important is whether the business is suitable. Patrick recommends considering the following questions:
· Have you run a successful business for at least one year?
· Have you proven your concept?
· Will it survive in the long term?
· Is it profitable?
· Can you produce audited accounts?
· Do you operate in a niche market or offer something different in an established field?
· Can your business be replicated and easily taught?
· Can you offer leadership, strong management, motivation and support?
· Can you offer a franchise at a cost that is good value for money and can make a decent return on investment in the short to medium term and a good living for its owner?
He added, “If the answer to most of these questions in an honest ‘yes’, then the business may be suitable for franchising. However this is only the start and amongst other things success relies on commitment, perseverance and business acumen.”
For more information about Fraser Brown’s franchise services, visit www.fraserbrown.com telephone 0115 9 888 777 or email pwood@fraserbrown.com