Purchasing a franchise

Franchising offers a potential business owner the advantage of starting up a new business quickly based on a proven brand and a formula of doing business, as opposed to having to build a new business and brand from scratch.

A well run franchise would offer a complete business: from site selection to lease negotiation, training, mentoring and ongoing support as well as any legal requirements and troubleshooting. Also with the help of the expertise provided by the franchisors the franchisees are able to take their franchise business to that level which they wouldn't have had been able to without the expert guidance of their franchisors.

Franchisors often offer franchisees significant training, which is not available for free to individuals starting their own business. Although training is not free for franchisees, it is supported through the traditional franchise fee that the franchisor collects.

Unless a potential franchisee has a lump sum available to invest outright in a franchise business, they will need to secure significant funds from elsewhere to cover the upfront and running costs associated with becoming a franchisee. Usually, these funds are raised by borrowing.

For further information on raising finance to purchase a Franchise please refer to the section "Obtaining Finance".