Making money online with a franchise – Is it as easy as they say?
There are thousands of websites that talk about how easy it is to make money online with franchises. If you’re researching your next money making experiment, here’s some sensible advice.
A franchise is a ready-made ‘business in a box’, providing everything you need to make a go of it. Franchises can cover office based businesses, retail, food and drink, services and goods… you name it.
A franchise gives you a business blueprint to work to, but it isn’t magic. You need to put in the hours and make a substantial effort, just like any other business. So what qualities do you need to run a successful franchise, whatever the sector?
- determination and flexibility
- good organisational and administrative skills
- a calm outlook and a common sense response to pressure and stress
- the ability to work hard on your own, as your own boss, sometimes for long hours
- the ability to take instructions and work to a proven formula without going off the rails!
- decent ‘people skills’
How do you choose the franchise that suits you best? Here’s a list of sensible questions to ask before you take the plunge and make an investment:
- does the franchise owner sell you their product then leave you to it, or do they provide ongoing support and training? Unless it’s a very special offer indeed, it’s best to choose one whose owners are available in the long term, prepared to help you set up, keep up and stay ahead
- can they provide statistics and figures to prove that your fellow franchise owners are making a decent living from it? If they can’t give proof, step away
- are they willing to let you chat with other franchisees informally about the offer and any pitfalls they’ve encountered? If not, steer clear!
- can you claim your money back in full if your franchise fails? Go for a franchisee who’s confident enough in their product to refund you if failure isn’t your fault
- take a long, hard look at the sector your chosen franchise operates in. Is it something in high demand, that people will always need, or is it a flash in the pan?
- ask to see supporting paperwork, checking the fine details and small print.
- ask to see the training and support materials on offer, checking they’re comprehensive enough and sufficient to give you the help and expertise you need
- check out the business background of the franchise owner and make sure they have enough experience to see your investment through hard times and easy times
- will you need to employ staff, or is it a one-person business?
- how does the franchise agreement work from a legal perspective? Get a solicitor to check out your Agreement or Contract before you sign up
- what area does your franchise cover? Is it big enough, with enough people in it, to make a go of things?
- Are there any restrictions about how you run the business and if so, are they fair and realistic?
- What about income – is the projected income realistic or too good to be true? If it looks too good to be true – a get rich quick scheme – is it legitimate?
- What happens if you fall ill or can’t carry on for some other reason and want to sell your franchise?
Need more advice and guidance? The British Franchise Association website is full of useful information: http://www.thebfa.org/
Published February 9, 2012 & Filed in Discount Coder Chat
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