One type of investment often overlooked is the business franchise. There are a plethora of franchises available; the difficulty is choosing the franchise to fit your personality, your needs and most importantly, will make you money. Searching for the correct franchise can be overwhelming. The plus side to investing in a franchise is you do not have to establish your own business brand. You are buying into an established name, a proven business plan with name recognition backed by a larger organisation.

Not only do you acquire the business itself, but you also acquire the business training required to successfully run the franchise. Beware, though – not all franchises are good investment opportunities. Not only must you do your homework on what is available and what the market is demanding, but you also need to make sure the franchise is a member of the British Franchise Association, which requires a charter of ethical franchising before the company is allowed to become a member.

What do you need to become a franchisee? Money is usually not an issue because franchises are typically affordable. But, if you still need a loan, banks are usually willing to loan money for a franchise opportunity because it is a business considered a lower risk. What you will need are management skills, a serious work ethic and considerable self motivation. In addition, while this is ‘your’ business, you still must be willing to work within someone else’s business plan and framework. Sometimes this is difficult for an entrepreneur, but it is required in a franchise.

One you decide you would like to be a franchisee, you need to research franchise opportunities in the market. There are many resources to help you including a buyer’s checklist, a match site, a directory and many publications. Using all of these items, and taking the time to look into every franchise opportunity, will help lead you to a successful business enterprise.

There are thousands of franchise opportunities available in the United Kingdom, and further afield. 

As with any business start-up, adequate finance is required, not to mention an in-depth knowledge of the sector, and the potential pitfalls and stumbling blocks. Thorough research is an absolute must and professional advice is invaluable.

At Compare the Financial Markets we understand the franchise business and can provide the information you require to make a success of your franchise choice.

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