Here, Andy Knights, CEO of Stagecoach Performing Arts, shares some key steps you should take before you sign on the dotted line.
Understand your fit
Franchising presents a range of opportunities that attract many aspiring business owners, but it is important to go beyond just wanting to own a business. You need to evaluate if you are genuinely suited for the role. Reflect on your skills, experience and strengths – how do these align with the demands of running a franchise? Evaluating your preparedness is essential to understanding if you have what it takes to thrive in this ever-evolving business landscape.
Prepare yourself for the highs and lows involved in expanding a local brand and launching a new business. The journey is often marked by both successes and setbacks, and resilience is key. Recognise that success in franchising is not typically straightforward; be ready to face obstacles and navigate through them with determination and flexibility.
Do your homework
It is common advice to emphasise the importance of research, yet many dive into franchising in a field they love without doing the necessary groundwork. Using performing arts as an example, you may have had years of experience in acting, singing or dancing, but if you do not grasp the market dynamics of the industry you are entering, top-notch acting skills will only get you so far.
To truly succeed, you need to get a grasp of the local market where you will be operating and gain a deep understanding of your potential customers. Comprehensive research not only confirms your enthusiasm but also provides you with crucial insights to make well-informed decisions, ultimately boosting your chances of building a successful business.
Teamwork makes the dream work
Franchising offers a fantastic opportunity to start your own business with the support of an established brand, but it is crucial to ensure that the brand lives up to its promises. While the franchisor should have thoroughly assessed you to ensure you are a good fit, it is equally important for you to scrutinise what they offer and the level of support they provide.
Evaluate the quality and depth of the initial training they offer to ensure you are fully prepared to launch and manage the franchise effectively. Remember, entering a franchise agreement is not a one-time event – it is the beginning of a partnership. Ongoing support and collaboration with the franchisor are essential for creating a successful and mutually beneficial relationship.
A critical eye
Give that franchise agreement a thorough examination. It is crucial to understand all the obligations, restrictions and rights you will have as a franchisee. Keep an eye out for any clauses that could limit your flexibility or introduce significant risks. It is wise to enlist a franchise solicitor to help decode the legal jargon and ensure you fully comprehend the terms. Do not hesitate to negotiate modifications if something does not seem right.
This agreement forms the foundation of your business relationship with the franchisor. It is not just about safeguarding their interests – it is equally about protecting your own.
Behind the scenes
Reach out to current franchisees to get the real scoop. While the franchisor might paint a rosy picture to get you on board, there is nothing like hearing the real deal from franchisees who are living it themselves.
Ask them about their experience with the franchisor, the level of support they receive, profitability and any challenges they have encountered. Their firsthand insights can offer a realistic perspective on what it is like to manage the franchise day-to-day, helping you determine if their experiences align with what you are expecting.
Jumping into franchise ownership is a big move, but with careful thought and thorough preparation, you can pave the way for success. By understanding yourself, researching thoroughly, securing strong support, examining the franchise agreement closely and seeking insights from current franchisees, you will be well positioned to make a wise investment.
