FRANCHISING is fast becoming the way forward for budding entrepreneurs.
Figures show that one-fifth of the 600,000 businesses that start up in the UK every year cease trading in the first year. Franchised firms have a success rate of 90 per cent.
In order to help budding entrepreneurs avoid some of the pitfalls associated with franchising, Edward Rimmer, MD of leading finance firm Bibby Factors Manchester, has come up with some tips:
Make sure that you research thoroughly
Consult the specialists -- go to www.british-franchise.org and read the national and trade press
Visit the franchisor -- seek clarification on anything that is not clear
Don't take things at face value -- don't make any assumptions
Meet the franchisees
Prepare a business plan
Sort out your finances -- make sure that you have adequate backing
Seek legal counsel -- use a lawyer specialising in franchising matters
Check out the small print
Mr Rimmer said: "Compared to starting up on your own from scratch, franchising can provide a relatively safe route.
"However, franchising is not a get rich quick solution and there are risks involved."
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