Franchising 101: The Official Franchise Start Up Checklist (Part 1)

Modified on - Published on

franchising checklist

Considering starting your own franchise? Look no further than our definitive franchise start-up check list. Follow this to be sure you donít miss any important stages out.


The franchising industry is booming. There are almost 50,000 franchise businesses in the UK that together contribute more than £17 billion and 710,000 jobs to our economy (both up 14 percent since 2015) (The British Franchise Association/ NatWest Franchise Survey 2018). If you too want to reap the benefits that running a successful franchise has to offer, itís important to consider each decision in the set-up process very carefully - research should become your best friend. To make sure that youíve got all your bases covered before jumping into your franchise adventure, weíve created the definitive franchise start-up checklist.

Setting up a franchise can be a stressful process and one where it feels like there are a million and one things to do. Using this resource should make the process as simple and straightforward as possible. These 12 steps are based on advice from the British Franchise Association.

The official franchise start-up checklist

1. Use information provided by the British Franchise Association

The British Franchise Association (BFA) is the Ďvoice of ethical franchising in the UKí. You can visit its website for lots of helpful tips about the franchising process and the latest industry news. We recommend always choosing a franchise that is a BFA member; this way you can be confident that it is sustainable, ethical and free of misleading statements.

If a franchise isnít associated with the BFA, you may want to consider why thatís the case. Though there may be a perfectly good reason, itís a sensible idea to dig a little deeper and ask questions of the franchisor. You can read more about why choosing a BFA-approved franchise is a great idea here.
 

2. Complete the BFAís free Prospect Franchisee Certificate

The video-based course helps provide an overview of what it takes to succeed in the franchise industry and helps prepare you for the franchise journey.The free piece of software runs you through the various skills youíll require as a franchisee and tests whether youíre likely to flourish or flounder in the position.



3. Establish what you can afford

One of the most important questions you can ask yourself is whether you can actually afford to make a proper go of it with your chosen franchise. While you may have the funds to cover the franchise fee and initial investment, this doesnít necessarily mean youíre able to afford the franchise. More often than not, the initial franchise investment is used to pay for training, equipment and start-up costs, but doesnít provide you with working capital or the breathing room required to handle the first few (potentially profitless) months of business.

For franchising newbies, understanding franchise investments can be confusing. If youíre in need of some clarity, we have a handy article unpicking the real cost of a franchise.

4. Self-reflect on your own skills and what you want to achieve

Ask yourself what youíre good at, what you enjoy and whether you have any personal circumstances that will prevent you from doing something. If you love interacting with the public, then a customer-facing business could be perfect. But if you are more introverted and prefer working on your own, this type of franchise might not work.

The beauty of franchising is that you can making a living from something youíre passionate about while being your own boss. And with full support and training, you can try a completely new career path.

Franchisors will often evaluate the support you will have from friends and family as part of their recruitment process, so itís important to bear this in mind when choosing a franchise.

5. Perform thorough research into the market

Itís not uncommon for aspiring franchise owners to hit the ground running without having a full understanding of the business and the market it operates in. Speak to the different trade associations that are appropriate for the franchises you are considering. For instance, if you are considering starting a jewellery franchise, you could get in touch with the National Association of Jewellers.

6. Attend a discovery day

After youíve chosen the franchise you want to go for, you can attend a Discovery Day. Itís a great way to find out more about the opportunity and whoís involved. Take time to prepare questions, as the more prepared you are, the more youíll get from it Ė and the more youíll stand out as a serious candidate to the franchisor.

7. Know the franchise opportunity inside out

You need to undertake due diligence on the franchise opportunity you choose. Only once you have assessed and re-assessed the opportunity can you continue the steps to making your dream a reality. Investing in a franchise is a long-term commitment that shouldnít be taken lightly.

  • Speak to franchisees. We recommend speaking to current and previous franchisees to get a real sense of what owning your own business with the brand will be like. Donít just accept a few names that the franchisor gives you, as the franchisor might have cherrypicked the most successful.
     
  • Meet with the franchisor or franchise management team. Be wary of anything they avoid answering or if anything seems too good to be true. In the early days of your new franchise, you'll regularly be interacting with the franchisor's management staff. To a significant degree, they'll be the ones that guide you through the set-up process and offer advice and guidance. If you find that management is particularly unhelpful, uninterested or unwilling to work closely with you, expanding the business beyond its early stages is likely to be difficult. With this in mind, you should attempt to meet the franchise management staff beforehand to get a feel for your future relationship.

     
  • Understand what training and support is on offer. If youíre to become a franchisee with any chance of success, youíre going to require the guidance, assistance and support of the franchise. One of the key benefits of the franchise system is that youíre backed by an organisation that knows how to implement its proven business model and has a great deal of experience under its belt. This experience and expertise is next to useless if it doesnít have effective training and support programmes to pass the information on to new franchisees.

     
  • Consider whether the royalty fees are sustainable in the long term. Itís not only the initial investment that youíve got to worry about. While royalty fees are a necessary part of the franchise model, they can be the death of a business if theyíre set unrealistically high. Some franchises waive the royalty fees for an initial period, but this doesnít mean you shouldnít factor them into your financial calculations. Remember, you need to be able to turn a profit, pay the royalty fees and give yourself a decent wage if the franchise is to succeed.
     

Read our 50 questions to ask before you buy a franchise Ė these involve what you should ask yourself, the franchisor and the franchisees. You can also check out the Quality Franchise Associationís (QFA) franchise guide that will point you in the right direction.

8. Seek professional advice

Itís a good idea to use the services of BFA-accredited professional advisors who are experts in franchising. This way, you can be sure you are on the right track and wonít have any nasty surprises further down the line. This is essential when you have chosen which franchise to join and go to sign the franchise agreement.


9. Get funding

If youíre eager to own your own franchise but donít have the set-up capital, there are plenty of funding options to support you. Learn more here. This article answers the question: ĎHow can you start a franchise with no money?í

10. Choose the right location

You need to find a premises that will have enough foot traffic for your business to remain profitable and has parking spaces nearby. Remember that saving money on rent by setting up outside of a city might have negative consequences when no customers want to visit. See our guide to choosing the perfect location for your franchise here.

11. Complete the franchise training

Depending on the franchisor, this might be before you sign the lease for the premises or while youíre looking for one.

12. Familiarise yourself with the franchise operations manual

Finally, there are lots of important rules and regulations in the franchise manual that you need to keep in mind. Hopefully, you should have already spent time reviewing it but, if youíve only had a quick scan, now is the time to get up to scratch. This way, you can ensure you comply with policies when you launch.

If you use this franchise start-up check list, you should be on the right track to franchise success. Donít forget to make the most of free resources from reputable franchising associations like the BFA and QFA. Seeking professional advice is a good idea throughout the process, but particularly when it comes to signing the franchise agreement. We have a section of our website dedicated to the steps involved in setting up a franchise with the corresponding articles. You can view it here.

These articles may interest you

3 Successful Franchises That Started Up During Lockdown

If you thought that starting a successful franchise during lockdown would be an [...]


Recent Grads: Put Your Degree to Good Use and Start a Franchise

If youíve just graduated from university, chances are youíre feeling a little overwhelmed [...]


How to Start Your Own Child Care Agency

Starting a child care agency is a great way for ambitious entrepreneurs to really [...]


What Is Multi-Level Marketing?

Ever wondered what multi-level marketing (MLM) is? Here, we take a deep dive into [...]


VARIOUS TOPICS Ė TRENDS IN FRANCHISING

Q&A: Does Stagecoach Franchise in the UK?

Do you want to earn a living working with children as they grow their confidence [...]


FOCUS ON BUSINESS SECTORS

5 Reasons Why Running a Video Game Shop Can Really Be All Fun and Games

If you love nothing more than a good gaming session to connect with friends or [...]


FOCUS ON BUSINESS SECTORS
Did you enjoy this article? Please rate this article
Be the first to rate this article
These franchises may interest you
Promedica24 franchise

Promedica24

Live In Care at Home

Established & successful live-in care provider, Promedica24, is giving personable, community-focussed people [...]

Read more ›
Minimum investment
£1,000
Request
information
The Beautiful Method franchise

The Beautiful Method

Beautiful Home - Beautiful You - Beautiful Business - The Beautiful Method

The Beautiful Method is a Management Franchise, offering clients a tailor-made housekeeping service to suit [...]

Read more ›
Minimum investment
£10,000
Request
information
Veeno franchise

Veeno

The Italian Wine Bar

Veeno is a UK-based Italian wine bar chain

Read more ›
Minimum investment
£35,000
Request
information
Shakeaway franchise

Shakeaway

Shakeaway is the worldís largest MilkShake Bar company and the original re-inventor of the milkshake, shaking since 1999.

Shakeaway is a unique Global Company with stores popping up all over the world! Get involved in this fun fast [...]

Read more ›
Minimum investment
£40,000
Request
information
Thai Express franchise

Thai Express

Same Same But Different

THE global leader in Thai fast casual dining. Itís not just that we use the freshest ingredients, or the amazing [...]

Read more ›
Minimum investment
£50,000
Request
information

0 Comments

post a comment

Characters remaining: 250