Starting out

To produce a successful franchise network relies on a clearly defined set of operational rules, methods and instructions contained within the franchise manual.

Let's take a positive approach and examine some of the advantages when you join a UK franchise network.

Sign the franchise agreement and immediately have a huge sense of freedom. You are your own boss and you decide your future. No more waiting for promotion. No longer will you have to ask permission to take a break or arrange a vacation. No prior booking of holiday dates or counting how many days are left from your annual leave allowance.

You decide how hard you wish to work, with the results of your success belonging entirely to you. Extra work means extra money to spend on those little luxuries we all deserve. 

Your business life is private, with no one checking your emails or letters, dealing with your phone calls or kidnapping your customers. The other advantage is that your family regains its rightful place in your life, with time available for them without the risk of losing your job.

No one will control what you earn or ever refuse you a salary increase. Apart from the franchisor and revenue, your income and profits essentially remain private. Every day brings a fresh challenge, meeting new customers and fellow franchisees. Franchising is a friendly occupation. Most franchisees operate within a specific market competing only with non-franchised outlets and not with each other.  Taxation on self-employed earnings is generally less than those in full time employment, with a greater variety of business expenses allowable.  

In the interests of fairness, we also need to consider the disadvantages, most of which are common problems faced by any start-up business. Remember that your finances and returns will be uncertain. You may find yourself earning more than you did, but despite your success, mortgage providers prefer to see regular income. Self-employment can make it difficult to obtain credit or private finance.

Your capital may be at risk, and remain so during the period of the franchise. Worst-case scenario may mean your home and assets could be seized to pay any outstanding debts incurred. Sudden illness means a direct loss of income and customers. No sick pay, sympathy or redundancy payout for the self employed.

Hours of work are uncertain, and it may be that you see the wrong side of sun set and sun up on a regular basis. Your work may impact on family and relationships as you carry your burdens home.

My own experience confirms franchising is enjoyable. I call no one master. I decide how much and how long I wish to work, and never worry about being sacked. Having made the decision to join a franchise, the next major concern is finding premises. After the franchise fee this will prove to be your greatest expenditure. Assistance will probably come from your franchisor in finding suitable premises. You should try to remain within the immediate area of your home. Travel to work is expensive and time consuming and not an allowable business expense.

Forget the ivy clad village shop and concentrate on what really matters. How many customers live within 10 miles of the location? Will local trade be able to produce sufficient income? Can customers find parking near to my operation?

Try not to rush out and buy the cheapest location. You are committing yourself to a long-term financial burden. Buy and you may discover that in a few years you need to move to larger facilities, or the location is poor. The advantages are that no one can throw you out, and you can build up your business. There is no requirement to seek landlord permission to make alterations.

Renting commercial premises is the other option. No large initial investment, although a deposit of at least three months rent is general. Most leases run for three years and you could find yourself out of your premises at the close, leaving the chance for competitors to take over your customer base. For rent and buy you will need a lawyer and a surveyor. Insurance on buildings and contents will be coupled with a requirement to install and maintain an adequate security system. Around £500 per annum for maintenance is usual.

Consider 'living above the shop'. Tripping downstairs instead of the daily commute has appeal. Work and excess stock tripping upstairs at the end of the day has less. The temptation to spend a few more hours on business rather than relaxing above can fracture the strongest relationship.