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Flag number one, being vague. How does a franchisor react when you speak to them about the territories? Or about the training? Or about marketing? Do they go into detail? Can they give you examples? Or do they just say ”yeah, we do training every couple of weeks”. How well can they outline a particular plan? As an example, ”On week one, is train you on how to prospect. Week two we explore sales. Week three we talk recruitment.” When speaking with the franchisor, are they giving you that level of detail? Can and do they breakdown your training in a clear and easy to follow manner?
If you aren’t able to see examples of how the training is implemented then be careful. Unfortunately, you might not be getting the detail in the franchise that you’re looking for.
Flag number two when buying a franchise, is that your franchisor has an unprofessional attitude. The chances are you will be in a relationship with them for the next 5 to 10 years. Make sure your franchisor has a professional attitude and that you feel comfortable you could turn to them if you encountered any problems.
Another way to assess their attitude is to simply see if they went to a solicitor to get their franchise agreement put together? Is that solicitor recommended by the BFA or the AFA? Or did they in fact just go to the library, took out some books and write out the franchise agreement themselves? Perhaps they skipped that step altogether and just downloaded one off another website? That might not be the attitude you are looking for when you’re buying a franchise.
These are the types of things that you’ve got to look at before investing in a franchise for the next 5 years of your life. These are the questions you’ve got to be asking. Make sure your franchisor has an attitude that you would be prepared to work with for the next 5 to 10 years.
Flag number three, are they offering you discounts? Do they need you to start next week? And if you can start by next week and get them paid, are they willing to give you a 70% discount on your induction fees? Generally, it’s the same with everything, if you buy cheap, you buy twice. Take a look at why they’re giving those discounts. Are they desperate to get your business? What state is the master franchise in? Think very carefully before you buy any franchise.
Chances are you’re going to be investing at least £10,000 when buying a franchise. Make sure it’s someone who has a professional attitude. Make sure they have a relationship that you can work with for the next five to 10 years and make sure they’re not trying to rush you through the process. If you’re just fact finding at the moment, just find out facts. And when you’re ready to buy, be comfortable to go back to them.
Check out our other blogs for more tips on what to look out for when buying a franchise.
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