Franchises

daveboy01

Excuse me if this a repeat of previous threads - although I can't find much on this board about franchises... Generally, I just wondered what people's opinions of franchises are? From a franchisees point of view do you think they're a good idea or a rip-off (or somewhere in between)?

More specifically, I live in the UK at present but I am keen to move back to Ireland and set up a new business. There's a local business in the city I live in that I really admire and they're very successful from what I can see (they have 5 or 6 "high street" locations) but they have not expanded nationally. I am considering approaching them and asking them would they consider selling the franchise for Ireland to me. Do you think this is a good idea or do you think that I should simply start my own business and imitate their concept. Bear in mind I have no real experience in the business they are in (but I'm very interested in getting into it) and therefore I think I would benefit from the guidance which they would hopefully provide. Any thoughts or opinions would be welcome. Thanks:)

jetsonx

This question is really down to your own expectations of what you want from
your career? Would you like to be your own boss while following a strict set of
guidelines that most franchisors require of their franchisees? OR Would you like to be totally free to do what you like but have none of the support of a tried-and-tested business system behind you? Do you see yourself as an entrepreneur or a manager? These are the questions you have to ask yourself.

Culchie

It is critical that you do the research on the Franchisor, especially their support structure (make sure you visit their HQ)....their training program...... and most importantly, their track record (speak to existing franchisees).

Regarding OP's original question.... if the UK chain of restaurants he admires has no brand prescence in Ireland, then I'd say that he would lose out on one of the best advantages of a franchise, their brand.....so maybe he should look at imitating the concept he admires, start one business, and if successful, look at expanding/franchising himself.

I'm a franchisee, have a successful business, and I'm a great believer in franchising, providing you've done your homework on the franchise itself. The banks look very favourably on franchises now as well, and so they should with 90% of franchise operations still in business after 10 years ......this compares to 20% of non-franchise businesses. My business would not be where it is today (so quickly) without the brand prescence and credibility that a franchise brings......sure I might have made it on my own, but it could have taken years to build up, and time is money, and also it's years of your life gone as well.....so if franchising makes sense, then go for it.

Jetsonx - I'd slighty disagree with your definition of a franchisee being a 'manager' rather than an ''entrepreneur'. I think it's fair to say that it's about half way between the two.
Whilst you do (and should) have to follow and meet certain brand guidlines and expectations, it certainly isn't a case of putting a prepared cake into the oven and taking it out 30 minutes later and being ready to eat.

'Entrepreneurs' as a general rule generally make pretty poor business men/women ... they quite often require a steadying influence in the areas of financial management/customer relations, be it with another business partner/accountant etc..... but that topic is for another thread I guess.

antoinolachtnai

I would say that what you should do is to figure out the two cases - starting from scratch on your own vs. having a franchise partner and work out the practicalities and the financial sums of doing each.

Also, try to figure out whether the business really is profitable. A lot of these high street franchise things actually never make money. You need pretty big gross profits to make a concept franchisable in any case. (So carpet cleaning or fast food franchises reasonably well, but carpet sales or haute cuisine don't, as simplistic examples.)

Ideo

There's a business/franchise magazine available that might give you some ideas/answer some of your questions. Saw it on sale in Easons although you should be able to pick it up in most big shops

--amadeus--

I'm not a big fan of franchises, but that is a personal prejudice. What I would say is cost it carefully - you'll be paying your fees regularly so make sure you'll get value for money from them. In other words will teh expertise and brand name of teh franchise be worth the cost of teh fees?

Senda

Any ideas how I can get a Lidl or Tesco franchise to set up my business in Zambia, Africa? Please advice if you know any contacts and if this will be a good idea. There's a good opportunity to make a kill esp going in with a low cost strategy.
Will appreciate any feedback.
Thank you.

Sam Mac

Senda wrote: »

Any ideas how I can get a Lidl or Tesco franchise to set up my business in Zambia, Africa? Please advice if you know any contacts and if this will be a good idea. There's a good opportunity to make a kill esp going in with a low cost strategy.
Will appreciate any feedback.
Thank you.

Do they even have stores in Africa though?

Shimmy Jimmy CocoPop

Senda wrote: »

Any ideas how I can get a Lidl or Tesco franchise to set up my business in Zambia, Africa? Please advice if you know any contacts and if this will be a good idea. There's a good opportunity to make a kill esp going in with a low cost strategy.
Will appreciate any feedback.
Thank you.

You cant get franchises of either, they are privately held companies.

jimmii

Shimmy Jimmy CocoPop wrote: »

You cant get franchises of either, they are privately held companies.

Tesco have a successful franchise system in place already.