The decision to buy into a franchise is a major one, it takes careful consideration and due diligence.
Starting any business is a big deal, it’s not only an investment of your finances but also of your time. Read below, the top things to you consider before joining a franchise!
The first thing to consider is…are they bfa members? The bfa is governing body of British franchise, they established membership criteria against a code of ethical franchising. Award Leisure are members of the bfa and were also nominated for the Emerging Franchisor of The Year! This shows our franchisees that we strive to operate our business ethically and to a very high standard.
The different level of investment you have will determine what level of franchise you buy. From the start of the process, you need to understand the two things about your finances…
- How much do you have to invest?
- How much are you willing to borrow?
At Award Leisure we are in partnership with Hitachi Capital, so you can borrow 50% of your investment to get your business up and running. You also need to know what sort of return on your investment you want in the first year and the years to follow. Ultimately, before you make any investment you need to have a clear financial plan and forecast.
Research the Market!
Understand the market your buying into! Research your location and immediate competition. Speak to existing business owners and existing franchisees that will be in your network. Get an understanding of what obstacles they had to overcome and what you can do to make the start of your business venture a smooth one. Understanding the market will also allow you to get an idea on the level of income you will receive. For example, at Award Leisure we provide luxury leisure products that offer up to 40% profit margin, all our franchisees are on track to exceed their sales targets, this is because they understood the market they bought into. The leisure industry is growing year on year with more people spending time in their gardens. There has never been a better time to join the Award Leisure network than now!
Your lifestyle – Your interests
Franchising enables you to develop your current skill set and become your own boss. It’s important you invest yourself into something you’re passionate about, wouldn’t you agree? Keep in mind that you are investing in your future and making a long-term commitment – usually a minimum of five years, sometimes longer. How is this going to impact your family? Is it a business opportunity that your family can be involved in? Choose a franchise you can see benefits you and your family.
Finally, the most important thing is to have a plan of all the above points. Understand the franchisors heritage, the financials that surround your investment, the industry your buying into and how this is going to impact your lifestyle and the people close to you.