How to assess franchises


Business video

About:
Tips on what to look out for when buying a franchise
Starring:
Norman Grossman, 30 years' experience in franchising
Business:
Norman Grossman Associates plus 10 years' association with Auditel, the cost-management franchise opportunity

 

Norman Grossman on the importance of establishing a personal rapport with franchisors and staff…

“It’s very much a people-people operation. You need to find somebody you are comfortable with, someone you can trust, and of course their head office staff as well. 

“[It needs to be] Someone you feel you can work with for many years. And more often than not it’s the franchisor, who is very much a father figure [to franchisees], who before you sign on the dotted line you would want to meet.

On the value of talking to existing franchisees…

“Talk to a lot of franchisees who are actually in that particular business. Not necessarily the ones who are recommended to you, but quite a wide spread. 

“If the majority of franchisees are happy and if you know the majority of franchisees re-sign after the original franchise agreement ends, then it is probably something worth thinking about.

On choosing the right sector and enjoying the role…

“Most of all, is this something you’d like to do? 

“It’s like going to university: you choose a subject like geography, but after year you’re not interested in where Estonia is, you want to go out and find something else to do. You’re paying £9,000 a year now, so you want to be more precise. 

And in summary: when assessing franchises ask yourself these questions…

“If this something you’d really like to do? And do you like the people who are going to help you do it?”

 

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