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Franchise - anyone tried/running one?



bluenitsuj

Listen to me!!!
Feb 26, 2011
4,301
Willingdon
Hello All,

Being made redundant early next year :down: and am looking at the possibility of running my own business. ( not necessarily franchise ). Anyone on here running one or know of anyone.

Just after some ideas/feedback really.

Cheers
 


Gazwag

5 millionth post poster
Mar 4, 2004
30,093
Bexhill-on-Sea
From what I have seen, generally the people who earn money in franchises are those who sell them. In a lot of cases you are tied in with who you can purchase goods from and restricted in the area you cover.

It seems to me its better to try something off your own back, it still carries the same risk.
 










Tricky Dicky

New member
Jul 27, 2004
13,558
Sunny Shoreham
From what I have seen, generally the people who earn money in franchises are those who sell them. In a lot of cases you are tied in with who you can purchase goods from and restricted in the area you cover.

It seems to me its better to try something off your own back, it still carries the same risk.

This feels like the right answer, but I have no experience to back it up.
 


KZNSeagull

Well-known member
Nov 26, 2007
19,691
Wolsingham, County Durham
I have tried it. You do get tied into all sorts of things - suppliers, price etc. Apart from the Franchise fee and setup costs, you have to pay a %age of turnover to the Franchisor, who should handle marketing etc. The only ones that I would think are reasonably lucrative to the Franchisee are ones involving food. But as with any business, location is vital.

My advice if you want to go self-employed is buy an existing business, then at least you know what you are getting. It is extremely difficult to start a business from scratch. Good luck!
 


BensGrandad

New member
Jul 13, 2003
72,015
Haywards Heath
Any business or franchise now must be better than taking a pub on a lease. How to make a small fortune is to invest a large one with the likes of Enterprise, Punch, Greene King etc.
 




rool

Well-known member
Jul 10, 2003
6,031
This feels like the right answer, but I have no experience to back it up.

There are a lot of very succesful franchises and a lot of very shit ones.

You can research a fair bit to sort out the wheat from the Chaff and there is a National Franchise Exhibition in the Excell and the NEC due later in the year which is always worth a visit.

The best ones have a good business model and an identity that people automatically think of (Dyno Rod, McDonalds, Subway) and you find that banks are likely to lend to providing you have a good business plan.

You can research a bit on the BFA website or subscribe to Franchise magazine to check out what is available and how they will fit your skill sets.
 


bluenitsuj

Listen to me!!!
Feb 26, 2011
4,301
Willingdon
I have tried it. You do get tied into all sorts of things - suppliers, price etc. Apart from the Franchise fee and setup costs, you have to pay a %age of turnover to the Franchisor, who should handle marketing etc. The only ones that I would think are reasonably lucrative to the Franchisee are ones involving food. But as with any business, location is vital.

My advice if you want to go self-employed is buy an existing business, then at least you know what you are getting. It is extremely difficult to start a business from scratch. Good luck!

Have been looking at existing businesses, thought I found a perfect one but my Accountant had other ideas so I walked away. i have a bit of time on my side but would love to get something set up/running before d-day.
 


Worthingite

Sexy Pete... :D
Sep 16, 2011
4,959
Worthing
I think CEX, the games exchange stores, are franchises and from what I gather, they are a license to print money.
 






Cian

Well-known member
Jul 16, 2003
14,262
Dublin, Ireland
I've two mates who run separate Fastway Couriers franchises, one got the idea from the other.

Both are making fairly decent money out of it but it is very labour intensive work. Need a van licence. Setup costs are extremely low compared to some others or at least they were.

However, they appear to only exist in Essex in the UK.

Also know someone who lost his shirt on Subway, got encouraged by all around him (master franchiser, his landlord, his bank, etc) to over-expand and opened four branches within a few months - all are closed now.
 


Kaiser_Soze

Who is Kaiser Soze??
Apr 14, 2008
1,355
I've two mates who run separate Fastway Couriers franchises, one got the idea from the other.

Both are making fairly decent money out of it but it is very labour intensive work. Need a van licence. Setup costs are extremely low compared to some others or at least they were.

However, they appear to only exist in Essex in the UK.

Also know someone who lost his shirt on Subway, got encouraged by all around him (master franchiser, his landlord, his bank, etc) to over-expand and opened four branches within a few months - all are closed now.

There was a Fastway franchise in Horsham till about September last year but they went bust. So much competition for courier services with the likes of UPS, Citilink, DPD to name but three. People will accept a natural level of mis-deliveries and late deliveries. The only real driving force when choosing a courier company is price. Makes it very difficult to compete.
 




Dec 29, 2011
8,014
I think CEX, the games exchange stores, are franchises and from what I gather, they are a license to print money.

I don't think any games stores are going to be a good investment. CEX is the best of a bad bunch IMO, but in a few years HMV, Zavvi, Game etc will be out of business. The online industry is changing the whole face of our high street as we know it, and I think game/DVD shops will be the first major casualties of this. DVD sales will be very low soon with on-demand TV such as Sky and Virgin showing films a few months after their out, and on-demand online such as NetFlix and LoveFilm taking even more demand away for DVD's. Any demand left for DVDs will be forfilled by Amazon and eBay as they can offer very low prices compared to the high street stores.
This will happen to games too, but in a lesser manor. New game streaming companies have emerged in the last two years and will gather pace when people realise it's a cheap way to try lots of games at once. Physical game sales will be taken over by the online industry, as mentioned (eBay, Amazon) as well as supermarkets that can compete with very low prices to bring in the punters (basically loss-leaders).
CEX is a bit different as it relies on people selling and buying older games, which age better than DVDs, but i'd expect business to slow down for them too.

An good alternative example is Subway. People will always demand fast food and demand cannot be taken online.

In reply to OP, i'd say if you have a unique passion you should set up your own business and ride the wave.
 


Cian

Well-known member
Jul 16, 2003
14,262
Dublin, Ireland
There was a Fastway franchise in Horsham till about September last year but they went bust. So much competition for courier services with the likes of UPS, Citilink, DPD to name but three. People will accept a natural level of mis-deliveries and late deliveries. The only real driving force when choosing a courier company is price. Makes it very difficult to compete.

OK, probably not the best suggestion then!
 


WATFORD zero

Well-known member
NSC Patreon
Jul 10, 2003
25,651
As someone said earlier, look to buy an existing business. You can take a good look at what you are getting and there are some great businesses out there that just need a fresh look and/or some finance. Often the person who sets up a business is not the best to take it forward. Certainly easier to buy a good t/o than try and set up from scratch and is it's a business that you have experience of, all the better. Franchises tend to be a lot of work for little (or at best, mediocre return).

* all investment advice should be taken with healthy dose of cynicism *
 








Albion Dan

Banned
Jul 8, 2003
11,125
Peckham
Any business or franchise now must be better than taking a pub on a lease. How to make a small fortune is to invest a large one with the likes of Enterprise, Punch, Greene King etc.

Nobody should go near Enteprise Inns. Ever. They have ruined 3 successive landlords at our local by charging extortionate amounts for beer. Awful company.
 



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