Business Grants, Support and Advice
:British Franchise Association
Page compiled the Heartlands Business Forum - supporting West Midlands Businesses

Contact: Simon Wise
email: simonw@british-franchise.org.uk
telephone: 01491 578050
web: http://www.british-franchise.org.uk

The British Franchise Association,
Thames View,
Newtown Road,
Henley-on-Thames,
Oxon
RG9 1HG.

START YOUR OWN BUSINESS WITH A FRANCHISE

Buying a franchise gives you the opportunity to run your own business, along proven methods and possibly in an industry in which you have no previous experience. The variety of types of business and levels of investment on offer is enormous, and it is important, therefore that you take your time and do your homework first. Although the failure rate in franchising is much lower than that in many other new businesses - 91% of franchisees in 2002 reported profitability - there are still risks involved, and it will be very hard work, particularly in the first years.

In buying a business format franchise, you are buying the right to run a system that someone else has proved will work. You have the benefits of trading under what may be a very well recognised brand name. There should also be on-going support from the franchisor, and an agreement, setting out the terms of payment, and the obligations of both parties.

A good place to start looking is with the British Franchise Association members. Established over twenty five years ago by a group of leading franchising companies, the BFA is a voluntary self-regulating body set up to introduce good practice into franchising. Members of the BFA have chosen to be accredited against a strict code of business practice - they must prove that they are an established business, offering a fair and ethical franchise opportunity. The BFA has over 200 accredited franchise brands in membership, representing many different types of franchise businesses and investment levels.

Every member is re-accredited against the BFA's Code of Ethics every two years - re-enforcing the value of BFA membership as a true quality standard in Franchising.

Whether the company you are considering is a member or not, you must still take great care, and research the company fully.
" Be sure to speak to existing franchisees, and ones that you choose - not just the ones the Franchisor directs you to.
" Be sure it is a business that suits you - it is going to take up a lot of your time, particularly in the first years, so don't choose a Pizza outlet if you are allergic to cheese!
" Be realistic about the amount of money you need to make, and choose a business that should cover that. Like any other business, a common reason for a franchise to fail is too much money being taken out too early.
" Ask the franchisor to disclose to you his financial record, the records of the Directors and the basis of the financial projections they make on your particular franchise.
" Take professional advice - have the franchise agreement checked by a specialist solicitor.

The BFA publishes a franchisee guide to help anyone interested in investing in a franchise. The BFA Franchisee's Guide (sponsored by Lloyds TSB) and DVD 'Your Introduction to Franchising' sponsored by HSBC provides a wealth of step-by-step advice on choosing a franchise. For real life franchising success stories and practical advice on evaluating a franchise, the BFA run seminars across the country with Business Link. For information on these and anything else relating to franchising visit the BFA's website at www.british-franchise.org.uk
For further information, please contact Simon Wise at the BFA on 01491 637041, simonw@british-franchise.org.uk

The British Franchise Association, Thames View, Newtown Road, Henley-on-Thames, Oxon RG9 1HG. 01491 578050