How to find the right franchisor

Sarah Cook, founder of Coconut Creatives, shows you how to spot a good franchisor

With around 850 franchises in the UK alone, prospective franchisees have plenty of businesses to choose from. Among the ones available, around 350 are accredited by the British Franchise Association.

The bfa is an excellent place to begin your search, as are the many online recruitment websites that list both bfa and non-bfa members, national franchise exhibitions, national newspapers, and business and franchise magazines.

Start by making a list of what you want in terms of earnings, hours of work, place of work and style of work. You may want to put your professional experience to good use and look for a franchise in the industry you already work in, or set up a business by expanding on a much-loved hobby.

Franchise prospectus
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Once you have made contact with a franchisor, the company will typically send you its franchise prospectus. This document should detail all the basic information you need to assess whether the franchise meets your criteria, which will then help to narrow your search. This will be an interesting time for you, as you will start to build relationships with different franchisors through email, phone calls and face-to-face meetings.

Are the franchisors prompt in replying to email and friendly on the phone? Take note, as this gives you a good indication of what it will be like if you join them as a franchisee. During your research, ask to speak to a franchisor’s existing franchisees about their experiences so far. A good franchisor will give you access to its network, although be prepared for this to be at the convenience of the franchisee and not yourself; after all, they are busy running a successful business.

In November 2011 baby swimming franchise Puddle Ducks was awarded Best Overall Franchise 2011 in the Smith & Henderson Best Franchise Awards. The awards were the first of their kind to review and judge franchisors based purely on the opinions and experiences of their own franchisees.

There is no higher praise for franchisors than that received from its franchisees, and Puddle Ducks is now in the enviable position of being confident that should a would-be franchisee talk to any of its network they will get a positive response.

Making comparisons
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With such a variety of franchise fees and earning potentials on offer, it can be extremely difficult to compare franchise packages like for like. Do not discount franchises that you initially think could be outside your price range, however, as there may be funding or loan structures available that could make them viable options. Therefore, it is best to check them against the following criteria:

* Return on investment.

* Working hours.

* Whether office or home-based.

* Whether hands-on or management set-up.

* Length of franchise agreement.

* Training and support available.

* Size of existing franchise network.

* How established the franchise is.

Within this set of criteria, pay particular attention to the level of training and support available. A good franchisor will not only offer a comprehensive, in-depth initial training package, but also deliver continued support through a network of key individuals.

Originally located primarily in Hemel Hempstead, The Rosemary Bookkeeping franchise enjoyed a record year in 2011 with above target growth throughout the UK. This was largely helped by the quality of the training and development package offered to new franchise partners.

The franchise has four directors who each specialise in a different area of the business - tax, marketing, operations, and training and support. Franchisees have an initial tailored training period of 10 days, followed by a regular support and development programme, as well as access to the franchise network for advice and support.

“Our business has proven itself to our franchise network over the past two years and people seriously looking at buying a franchise have realised that our support is unparalleled in the industry,” explains Lisa Curteis, Rosemary Bookkeeping’s franchise recruitment director.

Industry experience
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As well as the franchise start-up package, it is always useful to know the background and experience of the key figures within the franchise. A good franchisor will have relevant, proven industry experience. FASTSIGNS, the global leader in the sign and graphics industry, has around 540 franchises worldwide and over 25 years’ experience in the sector. Garth Allison, the company’s UK managing director, ran the FASTSIGNS Sheffield franchise centre for nine years with his son Paul before joining head office, and you can’t get more relevant experience than that.

Innovation is key in business, and never has this been truer than in today’s competitive market. A good franchisor should always strive to bring the latest in technological and intellectual innovations to the table, ideally with a dedicated research and development function within the business.

A franchisor that continually evolves in its specific sector is far more likely to be successful than one that ignores industry advances. A prime example of this is Mac Tools, a highly successful national franchisor based in Sheffield that prides itself on providing its franchisees with the latest innovative tools, enabling them to offer the latest products to their customers.

Whichever franchise you choose, remember that you are entering into an agreement to work with the franchisor for a number of years. You must like and respect each other, as successful businesses are always underpinned by a trusting and professional working relationship. So spend some time with the franchisor and its head office team to see how the relationship builds and if it will be a mutually beneficial alliance for your future.

Coconut Creatives is a leading provider of marketing services for franchise recruitment.