Starting a business can be tricky and starting up a franchise business is often considered a less risky option. A franchise business usually has a tried and tested business model and with the support and guidance of the franchisor has a greater chance of success.
There are a number of emerging franchises new to the market and it can be difficult when considering whether to take on a franchise from a new brand as the new brand has not yet established itself and hasn't built up its reputation.
Here are our top 5 tips for taking on a franchise from a new brand:
1. Do your research; check the history of the franchisor and how established and successful it was before deciding to franchise
2. If the franchisor has a pilot franchise or any other initial franchisees, speak to them and find out their experience or running the franchise so far and how they have found the training, guidance and support offered by the franchisor
3. Check whether any of the banks are willing to lend, banks will generally do their homework before deciding whether to lend on any new venture
4. Make sure you get legal advice on the legal documents that you will be required to sign in order to ensure to ensure you fully understand what you will be expected of you and any potential risks you may be exposed to
5. Know the market and the competition that the new brand will be faced with particular in the territory that you will be taking on
There are some much more novel franchises appearing which have a very different business model to the longstanding, traditional franchises. Whilst it is important of course that we move with the times and embrace new developments and technology, as with any business there are always risks. Therefore you should also always take time to look into the matter properly and never feel under pressure to sign up before you are comfortable with the information that you have received.