Your Business With James Caan 2017 - 91
CHECK YOUR CONTRACT CAREFULLY BEFORE SIGNING SO
YOU KNOW WHAT TO EXPECT FROM YOUR FRANCHISER
■ You'll be expected to pay a management fee based on your turnover for the
entire term of the franchise. Check what this figure is expected to be, as it can
range from tens to hundreds of thousands of pounds, although you should be
making enough profit to cover the amount that is set.
■ You will need to pay a new fee every time you renew your contract, which is
usually based on how well your business is performing. Again, check what this
will be before signing.
■ Some supposed franchise opportunities aren't franchises at all. Instead
you are buying the licence to trade under the company name, but without
the type of business ownership, training or support that comes with an actual
franchising agreement. Make sure you know the facts.
number of staﬀ and promotions. The
franchiser will retain the right of control
in other areas, such as the look of the
premises, the company logo, staﬀ
uniforms and promotional materials.
The exact details will be set out in your
contract, so check this thoroughly
before you commit to ensure you're
completely happy. If you deviate from
the contract, the franchiser could
terminate your business.
Remember, it is in the franchiser's
best interests to ensure you succeed.
You should be oﬀered support in the
form of a helpline or one-to-one visits
from your representative.
LAY THE FOUNDATIONS
pay an upfront fee, as well as ongoing
management service fees.
The initial fee can range from a
few hundred to tens of thousands
of pounds, depending on the brand,
location and level of support you'll
receive. In return, you'll receive help,
including funding, training, product
development, advertising and
promotions. As a franchisee, you'll
also be able to buy products in bulk,
with the associated discounts, so you
should make a proﬁt more quickly.
Running a franchise still means it's
essentially your business. You'll have
full control in certain areas, such as the
Investigate all your options thoroughly
before signing anything. Look at all the
franchises that are available - do they
suit you, your lifestyle, the amount of
money you are able to invest and the
return you're looking for?
Examine the company, talk to other
franchisees and ﬁnd out how many have
succeeded - and failed. Don't be afraid
to ask tough questions - it's your cash