Jackson Fire & Security - Seven ways to effectively research franchises
Published: 14 March 2022
Deciding to take on a franchise is a big commitment. You might feel that in principle it’s something you’re definitely interested in, but beyond that you’re not sure about the next steps you should take. One of the things we often talk about is the need to “do your homework” if you’re thinking about taking on a franchise but with franchising being such a huge industry, where should you start? Here are some suggestions from Jackson Fire & Security to help you get your research underway.
1. Explore online resources – but stick to reputable sites
There are many excellent online resources to help you as you begin your search for the ideal franchise. As a British Franchise Association accredited franchisor, it’s not surprising that we would recommend it as an excellent place to start! Franchisors who are BFA members need to continually comply with strict requirements in terms of the quality of their opportunity and ethics of their operations so you can be confident that the information it provides is of the highest standard.
There are many useful websites to take a look at too, including Business Franchise, FranchiseInfo and The UK Franchise Directory. As well as having directories of franchises available across the UK, many of them offer a wealth of resources that can help guide you in your search when you’re working out what franchise opportunity would best suit you.
One note of caution though. There have been several online scams masquerading as franchise opportunities so proceed carefully and stick to reputable franchise sites. If you come across an opportunity that sounds too good to be true, be careful.
2. Attend exhibitions
This has become rather more challenging since the arrival of Covid but exhibitions are still taking place depending on the guidance at the time. Exhibitions remain a really useful way to find out more about franchise opportunities and sectors of interest and the world of franchising in general. As well as meeting franchisors, you’ll often have the opportunity to chat to franchisees too. That can be extremely useful for discovering what it’s like running a franchise day to day (and it’s worth holding on to their details in case you have any questions for them as time goes on).
3. Assess your budget
While you’re in the very early stages of researching a franchise you might not have a very clear view of how much you wish to invest financially to get it off the ground. But you’ll probably have a rough idea of whether you are thinking in terms of a few thousand or hundreds of thousands of pounds and some thought upfront will help steer you towards opportunities that are pitched at the appropriate level.
Be aware that you might need to have some funds set aside, or as part of a business loan, as working capital to help your business through the initial set up period until it breaks even. And remember you will also need to have money available to cover your day-to-day living expenses until you reach the point where you can draw an income out of the business.
4. Think about the kind of relationship you want with the franchisor
Obviously, the very short answer here is 'a good one'!
But what we mean is think about the type of involvement you’d like the franchisor to have with you because that can help guide you towards the types of franchises that will suit your aspirations.
Many of the large big-name brands are well established and will offer you excellent support networks. There’s no doubt that their franchise opportunities will have very good prospects, but you might feel the relationship is rather less personal due to the size of the company and set up of the franchise arrangements. With a smaller franchise business, you’re likely to find that relationships are more personal as you’re often dealing directly with the team with overall responsibility for franchising. The relatively smaller number of other franchise branches or outlets could mean you feel like more of a team with the other franchisees too. There’s no better or worse option here per se – what’s important is finding the franchise that meets your preferences.
5. Check out the competition
As you start to get a better idea of the types of franchises that might be of interest, you can start to refine your search. Are there many similar businesses in your chosen area – geographically or otherwise – that will be your direct competitors? Having a lot of competition might not be a problem if there’s very high demand for what you offer. But you need to know if the market could be approaching saturation point. It doesn’t automatically mean you can’t make a success of your business, but you’ll need to be ready for the fact that it will probably be a lot more challenging.
6. Take a look at prospectuses and brochures
Take advantage of the fact that most franchise prospectuses can be quickly accessed online. It’s well worth taking a closer look at them as they will provide a lot more detail about important considerations such as the scope of the market, the type and quality of training you can expect to receive, and an indication of projected earnings. You’ll also find out more about the franchise fee and what you will get in exchange for it.
7. Go along to Discovery Days
By this point, you should be establishing a shortlist and you can narrow that down even further by going along to meet the franchisor on a Discovery Day. Most franchise companies will regularly run these types of events, often at their head office, so you can meet all the key people, get in-depth information about the opportunity and ask all the questions you have. A Discovery Day lets you really get into the details of the opportunity and it’s likely you’ll leave the day with a far clearer idea of whether it could be right for you.
And what then? After the Discovery Day the exact process will vary from franchisor to franchisor but if you visit our website you’ll find a breakdown of the next steps that we take. This will give you an idea of what’s involved – right through to the point of launching your new franchise business!
To find out more about the Jackson Fire & Security franchise, go to the profile page>>
