The franchise marriageA key thing to remember when weighing up whether a franchise is right for you is that it is a long term commitment; which I often refer to as the “franchise marriage”. When you sign a franchise agreement, you are usually signing into a business relationship for five years (renewable), and over that time there will be ups and downs, just like any marriage! Because of this, it’s important that you are happy that the franchisor is the right partner in this agreement, and that you are comfortable with them and the way that they do things.
You should weigh up whether their values are aligned with you, and whether you are happy with the levels of support from the head office team. Also, it’s worth making sure that you have an aligned sense of purpose and vision with them for the overall brand. By making sure that you consider these items before signing the franchise agreement, it reduces the risk of things going wrong down the line, and in turn both parties having to seek legal remedies to get any issues resolved.
It’s also essential to make sure that it is the right type of business opportunity for you. You should bring together the questions raised in the previous chapters to ensure that the franchise will fulfil your expectations over the course of the agreement: how big is the territory? Is it an operational or management franchise? What is the scope for expansion? Is an area developer or master franchise agreement more appropriate for you?
The above is an extract from The Franchising Handbook, which is due for release later this year. Follow this link to pre-order and be one of the first to read it!