Frequently Asked Questions

Does franchising reduce the risks of going into business on your own?

Statistically yes, when compared with other owner/operator businesses.  However all businesses are risky to some extent and certain franchises are more risky than others.  Our guides tell you more about the higher risk categories and how to mitigate some of these.

What are the most successful franchises?

There are many ways to measure success.  For example the highest number of franchisees or the highest overall turnover.  Examples of successful franchises that you maybe familiar with are McDonalds, Dyno Rod and Chips Away.   Success is down to a combination of the business concept, the franchisor, the franchisee and the circumstances of the business (ie location, funding, competition etc).

Can anyone be a successful franchisee?

There are a lot of franchises for sale that operate in any number of ways in a variety of markets.  If you look in the right places you are likely to find a franchise that you might feel could suit you.  But how do you know?  If you know what questions to ask you can improve your chances of being happy and successful.  Read part 2 of the series to find out the crucial questions that could make the difference.

How long will my franchise agreement last?

Typically franchise agreements last for five years. For the franchisee the agreement ensures they have a franchise business for the length of the contract on the terms agreed to. The length of the contract should also allow the franchisee enough time to recoup their initial investment and make suitable profit. However as circumstances change in the marketplace, lengthy agreements can sometimes become restrictive.

At the end of the contract the franchisor will normally offer a renewal and this may involve a renegotiation of terms.

Different length contracts apply in different industries and where initial investment is particularly high, for example a restaurant, the contract maybe be significantly longer.