There are two sides of the coin in examining franchise opportunities
When looking at franchise opportunities, it is important to consider the franchise and how it suits you as an individual. Entering into a franchise agreement is a significant commitment and warrants some reflection to ensure that not only does the franchise have good systems in place to support your growth as a business person, but also is a good fit for your personality and your life goals.
Xpresso Delight is a franchise that has been operating for over ten years. Part of the process that prospective Xpresso Delight franchisees go through is a due diligence phase in which they are given the opportunity to ask questions to assess the franchise and their suitability for the role. In this article, Director Stephen Spitz discusses some of the questions that prospective franchisees should consider asking the franchise, and themselves, when looking at franchise opportunities.
At Xpresso Delight, we understand that people looking for franchise opportunities come from different backgrounds and possess varying levels of business experience. That is why it is so important for prospective franchisees to ask questions to those who already have experienced the process and can help shed light on what is to come.
Existing franchisees can be a very valuable source of information. While their experiences may vary across the board, you will still be able to obtain important information that will be helpful for your situation. Areas such as franchisee support, lines of communication, work life balance and how passionate they are about their jobs should be discussed. At Xpresso Delight, we provide those looking at Xpresso Delight franchise opportunities a disclosure document with the contact details of current and past franchisees to encourage them to talk to these people as an important source of information.
It is also important to recognise that the information you receive from the management of a franchise system can be quite different from that given by their franchisees. Management may possess a different perspective influenced by seeing how different franchisees go about operating the same business model.
"Potential franchisees should look at the franchise opportunities they are considering... and make sure that they can still be true to themselves within the franchise system. Doing so will allow you to bring your passion into the role."
A key question to ask management would be asking about the business processes of the franchise. Items such as contract details, internal communications, business systems and operations, market demand and potential for products, current market share and prospects for expansion should be clarified. At Xpresso Delight, we fully encourage prospective franchisees to ask as many questions as they can in order to get as much information as possible. We also make getting legal advice compulsory, and we provide a legal binder with all documentation - including a draft copy of the franchise agreement, the latest version of the disclosure document and a copy of the code of conduct as per the FCA guidelines - for a prospective franchisee’s solicitor to sign off on.
Finally, if not most importantly, you should reflect upon how the franchise opportunities you are looking at relate to you as a person. A good question to ask yourself is whether you feel your personality and skill set will suit the franchise.
Potential franchisees should look at the franchise opportunities they are considering and make sure that they tick the boxes in relation to how they are as a person- to make sure that they can still be true to themselves within the franchise system. Doing so will allow you to bring your passion into the role and increase your work satisfaction. At Xpresso Delight, we encourage self-assessment in order to tailor our support to franchisees. We also provide constant education built on the idea of self-improvement to not only help our franchisees be better business owners, but better people as well.