Belonging to the franchise club

They say it’s like belonging to your favourite club. You’re there because you choose to be there; you are in the company of like-minded people; you all work towards a common goal; you have others watching your back and you can pool resources to get optimum results.

Buying into a franchise is an ideal way to start a small business and become self-employed. Compared to the risks of going it alone, it is well-worth looking at franchising as a sound option. You get a head start, without having to do all the preliminary research and can rely on a turn-key operation that will get you in business from day one.

Basically, it’s like belonging to a club. You pay the franchise fee for the right to join the club. As with most clubs, you won’t be allowed to use the club facilities if you haven’t paid the initial upfront fee. To remain part of the club and reap the benefits of what they have to offer, you have to pay on-going fees and finally, you have to adhere to the rules of the club to remain a bona-fide member.

Should you decided to go the franchise route and join that elite club of franchisees who number in the tens of thousands in South Africa and hundreds of thousands worldwide, you will need to fit the criteria of what makes a good franchisee by being:

– Familiar with all aspects of franchising – from the terminology used to the responsibilities that each side has to undertake to make a success of the business. This will ensure that you know precisely what it is all about, so there should be no unwelcome surprises at a later stage.

– Sufficiently patient to investigate the market – don’t just opt for the first franchise that catches your eye or buy a franchise simply because you like the product. Investigate options over the full range of business sectors – you may find opportunities in business areas you hadn’t thought of before.

– Thorough in investigating the franchise of your choice – this is the brand you will have to invest in, support and prosper with for the duration of your contract. Remember, a franchise is a long-term arrangement so you’d better make sure you can live with it and thrive!

– Willing to adhere to the very precise requirements of the franchise system of your choice, even if, at some time or another, you think that you know better. As with any club, there are rules and regulations that form the basis of the franchise formula and its success and you need to understand, accept and be prepared to adhere to all the requirements that you will be committing to when you sign up.

– Have adequate resources so that you can afford the necessary investment in the business and survive the initial lean months that almost certainly lie ahead. It is wise to plan a financial contingency to safeguard against unforeseen living expenses.

– Single-minded – your franchisor will expect you to focus on the business and maximize its potential to the fullest possible extent. If you have other interests that distract you from operating the business, tension may arise and you could even find yourself in breach of the franchise contract.

– A team player and prepared to accept that the interests of the brand and the network are not in competition with your own interests but actually complement each other. You will also be expected to make a meaningful contribution to the ongoing growth of the network and share your ideas, successes and failures freely with the franchisor’s team and your peers. If you are not willing to participate in all the activities the franchisor arranges, you might soon find yourself isolated. So, if you are the ‘lone ranger type’, chances are that you will miss out on some of the benefits the network offers its members.