Franchising a good idea?(12 Posts)
I found they cost thousands so started my own magazine alongside my website.
I looked at publishing/magazine franchises a little while back and was surprised to find how little they actually offered in terms of support. One I approached (a national brand) wanted £13,995 for the franchise fee plus VAT, then £750 each time I published a magazine (4 times a year). This in addition to the printing costs (which I later discovered they do themselves) so they were making a mark up on everything I'd earn! They did however include a website and editorial.
For the total cost, I realised I could pay a marketing company to cold call for 3 solid weeks (£130 per day) and a graphic designer to make me a great website and 'mock-up' magazine (total cost quoted £650) to sell to prospective advertisers. And I found printing costs elsewhere at about 30% cheaper than was quoted.
So my advice would be, there are lots of companies out there who are desperate for work and could give you everything these franchises offer but don't tie you in to any contracts AND cost much much less!
My opinion is that unless you're buying a household name (like Mcdonalds) which would give you income from day one, don't do it!
I am looking into a Slimming World Franchise, I back the product (or theory, as its an eating plan as well as a Brand) all the way and I know it works well, and is very popular.
It is just the fear of "can I do it properly for long enough to start making a profit".
start up franchise fees per group, hotel,travel costs for interview and training, before you know it a couple of months have gone by and still not a penny earned.
has any one else done this and got any advise for me please.
My husband owns a franchise. They do get a nice chunk from us but they do all the money chasing, put accounts on stop etc. They provide great software for our clients too. It is worth it for us as it relieves any stress around the money side of things.
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There are franchising trade shows you can visit and suss out the market. Some franchises are great and heavily supported by the owner (Pandora for instance - I was stunned to discover that most of their shops are franchised out!) but others might have less in the way of underpinning to help you along the way, and might require quite high fees.
Some also require you to be able to demonstrate that a) you have the know-how and b) you have sufficient actual money to get up and running, including shop-fitting and a slush fund to back it up for the first year or so sometimes.
Thanks all for your comments, I appreciate them.
Agabakes - I checked out the book recommendation and it is good. At least now I know where to start!
What are the geographical restrictions? Is there any reason why the franchise couldn't sell another one to someone in the same town as you?
I would agree with Medented. Franchising can be a really successful way of running a business as long as you fully understand what you are getting into. The ebook Successful start-ups start a franchise is a really good place to start. Theres good advice on how to choose a network and what questions to ask before you sign. It also tells you where else to look for more advice.
You have to consider what exactly you are buying - is it just a brand or is it an actual product? If a brand then for most of them their "brand" is heavily over-valued by them (and them only). If there's something that catches your eye, consider doing it all yourself - then its not costing you as much!
Watch out for the franchise fees, they can be very onerous. Make sure you find out exactly what you are getting for your money, both in terms of the up-front fee and ongoing costs. It can be an expensive way of doing things unless the expertise and brand you are buying into is worth it.
Hubby and I are looking at starting a business and he is dead keen on buying a franchise. Does anyone have any experience of franchising, is it a good idea and what should we be looking for?
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