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Franchise Advice

Am I a suitable candidate for franchising?

It is important to assess your suitability to becoming a franchisee prior to making any decision regarding purchasing a franchise. Candidates should consider that franchisee failure is never reported in the media and is often the cause of their own downfall. The franchise system is by no means a guarantee for your success.

The characteristics for failure generally include the following:

  • The franchisee was in business for himself in a similar type of business
  • Complacency
  • Not following the system
  • Interference by family and friends
  • Loss of nerve
  • Expecting too much from the franchisor

The failure rate for new business within a five years period is approximately 90 percent, whilst franchises is less than 10 percent. This demonstrates that franchising is indeed safer than starting your own business, but the potential franchise must understand that that they are in fact going into business on their own.

Please use this form to answer these question and make sure you are honest and thorough in your judgment to the correct answers to the questions.

What am I looking for in the new business and can I achieve it?
Do I understand what franchising is and what is involved?
Am I qualified physically and temperamentally to be self employed?
Am I at the right age to run my own business and recoup my investment?
Am I able to employ and direct my staff?
Do I have sufficient financial resources to start the business and fund it in the initial stages?
Am I able to raise the sufficient funds to purchase the franchise?
Do I have the confidence and nerve to survive any setbacks?
What skills will I be taking to the business?
Am I at my best with mental and physical tasks?
Do I mix well with people?
Do I have the commitment for hard work?
Am I prepared for long and unsociable hours?
How will my family react to my decision and the interruption to family time?
Will they support me mentally and physically?
Am I prepared to risk all my assets?
Will I and the family stand the stress which will follow?
Will the business be challenging enough in the long term?
Am I able to capitalise on the opportunity?
What do I hope to achieve from my business and the future?

 

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