Women In Business

Women In Business

For years, the franchise industry has been dominated by men; although it remains that there is still a higher percentage of male franchisees within the sector, the number of females is steadily increasing. According to the NatWest/BFA survey 2018, 37% of new franchisees are female. This number may seem relatively low, however, it’s above average when compared to the number of women who own SMEs in the UK, and it’s a breakthrough when you consider that in 2005, over 80% of new franchisees were male.

 

In recent years, there have been many initiatives to encourage women to become involved, not only in franchising but in the UK business population. The BFA and EWIF (Encouraging Women in Franchising) are just two of the organisations that are helping to promote franchising to a wider female audience.

 

Here at Franchise Resales, we love to get behind these events and help to empower women in the franchise industry. Our own team has grown from being predominantly male to now having an equal split.

 

Our CEO, Julie Taylor, began life in the franchise industry over 20 years ago. Julie has seen the industry change over the years and is proud to have been a part of the change. Julie began her career in franchising, working with RE/MAX and has since worked in various roles within retail and property franchising. Julie really came into her own when she left her job to start her own business; Franchise Resales was one of her first customers. Working with the founder, Derick Simpson, Julie started in Sales Support, dealing with enquiries, liaising with and supporting the account managers. When her son, Michael, joined her in 2012, he took Julie’s role whilst she went on to become an account manager. In 2015, Julie and Michael headed up a management buy-in; becoming the new Directors and Julie is now the CEO of Franchise Resales.

 

Julie loves her job and enjoys creating relationships and partnerships with others. The Franchise Resales ethos is all about creating a win-win scenario for all involved. Julie heads up a mixed team of employed staff, self-employed account managers and sub-contractors, and is looking to expand the team further as we move into the 2nd phase of a 10-year plan.

 

Throughout her career in franchising, Julie has delivered training to business owners looking to franchise their business, helped established franchisors to increase their network and supported new franchisees to grow their franchises successfully. Julie is an accomplished public speaker and has travelled across the world to help others begin their franchise journeys.

 

As a team, we have seen an increase in both female franchisees and prospective buyers. It provides such pleasure to see that the industry is evolving, and not only is the franchise resales aspect of the industry expanding, but it’s also becoming an equal playing field for men and women. We are excited to see what the future holds for women in franchising and look forward to speaking with many more prospective female buyers and sellers.

 

Business as 'Usual'

Business as ‘Usual’

We all know how unpredictable business can be, even at the best of times. Nevertheless, nobody could have anticipated the current situation when we welcomed in 2020 and entered the new decade. Business, as we know it, has changed – but that doesn’t necessarily mean that it has to stop. Whilst we understand that some businesses have had no other option but to cease operating, others have been able to adapt to the current climate in order to help their customers, and even create new customers in the process.

 

Here at Franchise Resales, we have been fortunate to continue trading with some changes being made to the way we work, in order to adhere to government guidelines and maintain safety for our team and customers. A majority of our team already work remotely; our team are based around the United Kingdom – from Scotland down to Kent. Our processes ordinarily involve a large number of online services, including business evaluations for new businesses coming to the market. Telephone conversations with prospective buyers, franchisees, and banks, to name a few – are standard practice here at Franchise Resales; none of this has changed for us.

 

However, we would usually arrange face to face meetings for prospective buyers with franchisors and franchisees – we have now replaced these meetings with video or telephone calls. What is interesting is that we are discovering that these online meetings are productive and successful.

 

We know that buying a franchise resale is a ‘low risk’ way to start and run your own business, and now, more than ever, is that statement true.

If you are considering buying a business, a franchise resale could be the perfect choice for you right now. The businesses that we have on the market provide the perfect foundation for you to begin the journey to becoming your own boss. Each one has an established and loyal customer base, regular turnover, as well as a stable reputation.

 

It takes time to buy a franchise and time is something that many us have on our hands right now. Why not use that time to explore some of the franchise resales that are on offer right now.

 

We can begin the process with you and help you to find the perfect business for you. We will guide you through the business, arrange an online meeting with the franchisor, introduce you to the franchisee, and point you in the right direction when it comes to funding and creating a business plan.

 

We hope to hear from you soon, and stay safe!

Woozelbears Case Study

Woozelbears Case Study

Woozelbears – Canine Hydrotherapy

 

The Woozelbears brand was beginning to grow, Charlotte – the franchisor, had recruited five franchisees by the time she had made her initial enquiry to sell on the 9th of July.  Charlotte’s Witney branch was the initial operation of the Woozelbears network.

Due to the location of the site being a 5-hour journey from Charlottes home, she made the decision to sell her franchise in Witney in order to progress the company via the franchising route as she was going to need money to invest in more potential franchisee’s.

 

The Beginning – Valuations and Listing Agreements

Charlotte chose Franchise Resales due to a recommendation by one of our funding partners; she says, “I chose the company based on a recommendation from franchise finance, there isn’t another company that provides this service and they were responsive to my enquiry.”

Franchise Resales Lead Manager, Keith Halsall, initially dealt with Charlotte’s enquiry to sell. He provided a Market Appraisal on the business which supplied her with a price to sell. Keith had to work with Charlotte whilst completing the Market Appraisal as the accounts were complex due to other business ventures. Together, they generated a price which both parties were happy with.

Being a relatively new franchise brand, which operates within a specialised sector, made the valuation moderately subjective. As Charlotte herself states, “Initially you always over value your business as the owner, and really, it’s only worth what someone will pay for it in the current market. With it being a niche business, I knew it would be harder to find a buyer than your standard franchise.” Charlotte and her accountant valued the business at £220,000 with an asking price of £240,000. Franchise Resales believed this figure was above market price due to it being a brand with little history and never having had a resale to gauge against. Keith was happy to list the business at Charlotte’s desired asking price, with the provision that if the market feedback shows that the price is too high, we could lower it.

Advertising

Advertising was a concern for Charlotte, primarily about finding a specialist buyer via broker websites. Franchise Resales and Charlotte came to a mutual understanding that if a buyer was found through direct advertising at dog shows, then no completion fee would be charged.

After several phone calls, Charlotte agreed to our terms and conditions and the listing agreement was sent out for signing. Circumstantially, we can be flexible with requests – Charlotte asked if we could put a special term in our agreement regarding finding a buyer from a veterinary exhibition. Charlotte said, “If I found a buyer from a veterinary exhibition, I asked for the fee to be reduced.” Franchise Resales agreed to her request and the Listing Agreement was signed at the end of July 2018, and the initial setup fee was invoiced and paid.

 

 

 

Prospectus Process

On the 27th July 2018, Keith sent out our Prospectus Information Form to Charlotte for completion. This is a form that the seller completes in order to provide us with a true understanding of the business. Once we have this information, we produce a Prospectus of Sale which provides buyers with all of the information they require to make an informed decision about potentially purchasing the business.

On the same day, a coming soon email was distributed to our database of potential buyers. This is a quick, vague email; it includes the business name, sector and general location. The concept of the coming soon email is to arouse initial interest so that when the Prospectus information form is back, we are able to contact the initial enquiries immediately, prepared with any information they may request.

Charlotte was pleased with our prospectus, stating that, “the prospectus was professional and well put together. I was pleased with the outcome and very few changes were needed to present it to the public. We did review it once during the process to keep it current.”

Occasionally, during this part of the process there can be some teething issues. Whether it’s from not enough information inputted into the forms, lack of clear communication, or a difference of expectations. This instruction was no different, in the early stages of our relationship with Charlotte there were a few minor issues that came to light. We had changed an internal process and unfortunately, the business was not advertised as quickly as we both would have liked.  The issue was swiftly resolved by one of the Directors, Michael Bohan. The business went live on external websites at the beginning of September and New Instruction Emails went out three times over the next 6 weeks.

Lead Enquiries and NDA’s

Over the next couple of months, leads were few and far between; none of which were looking promising. However, on the 15th November 2018, we had an online enquiry from Darren Brown. Franchise Resale’s Lead Enquiry Trainee, Ellie, dealt with the enquiry and sent an email to Darren informing him that an Account Manager would contact him and attached Franchise Resale’s Top Ten Tips for Buyers, and the Buyers Guide to Buying a Franchise Resale.

During the initial telephone conversation, Darren explained his situation and why he was interested in Woozelbears. Darren had 25 years’ experience working in Blue Chip companies, finishing his last senior role at the end of 2018. Darren had some equity behind him, meaning that he had the opportunity to buy into a business.  He explained that he was interested in a business that he could develop and had growth potential. It was essential that he would be buying into a sector where there would be genuine interest for himself and his wife to become involved. Ellie was pleased with what Darren had said and agreed to issue an NDA (Non-Disclosure Agreement).  All potential buyers through us have to be qualified and sign an NDA to receive any information on the business/es they enquire about.

On the 30th November 2018, Darren signed the NDA and was passed over to our Relationship Manager, Patricia Hayward, to receive more information, the financials and the business’s accounts. Darren could not progress any further until his current job contract had finished, also, with Christmas around the corner, Patricia and Darren agreed to cease contact until January 2019.

Darren states, “I found Patricia to be respectful and helped chased things along without being too pushy.  It was clear she only had limited knowledge about the business and the accounts, so it was good that there was a deeper level of knowledge and support within Franchise Resales to guide me through the  process.”

In January 2019, following conversation with Patricia – Darren agreed to fill in one of our Profile forms. This is a form that we ask buyers to complete in order for the franchisor to gain a good understanding of who they are. The franchisors needs to acquire personal information about the potential buyer interested in joining their network. Until a Profile form is completed by a buyer, we will not arrange a meeting between the buyer and franchisee/franchisor. Franchising is a process; if the buyer is unwilling to fill out the profile form, then how likely are they to follow a franchisors processes when they are in the network.

On the 5th February 2019, Darren returned his Profile form and Patricia arranged for him and charlotte to have an initial meeting on the 7th February 2019 at the Witney branch.

Darren said of his meeting, “It was good to meet up with Charlotte at an early stage to help us get a feel for the business and Charlotte who as the franchisor will continue to play a major role in the business.  The meetings we had were very open and informal and it was clear there was a mutual level of interest.  I was impressed with what Charlotte has achieved and importantly what I felt she could also go on to achieve.  She is clearly a classic entrepreneur, with lots of energy to get things done.  It was clear that the business had expanded to a point where some further management support and different thinking could be beneficial for future development, which was another big plus for us.”

Negotiations

The negotiation process is not as straight forward as it may seem, The team at Franchise Resales endeavours to work on behalf of the buyer and seller to make the transaction as smooth as possible. Darren says, “I think the negotiation period was longer and more complex than I expected, but I think much of this was driven by the fact that the future business structure was being devised as negotiations went along.  It was not a simple acquisition of a going concern.  I felt your role was pivotal in helping both sides try and balance an agreement.  At times it was looking like it would fall through, but unquestionably your communication and willingness to try and find solutions helped to get things over the line. I did feel the process of establishing a Memorandum of Understanding before moving to the legal stage was invaluable and helped to ensure the legal process, although quite involved, did have the benefit of  working to a clear framework of agreements.”

The legal process to completion

The negotiation stage is a critical part of any deal; this is where the Account Manager takes control over the proceeding negotiations. We request all offers to be in writing – preferably via email, it’s not a legal binding document – it’s an offer of intent to buy. Darren made his offer via email on the 4th April 2019, the original offer required negotiating and the final offer, following three months of negotiations, was agreed on the 1st August 2019. Darren had done a lot of due diligence himself, which would normally be done by a solicitor, to keep fees manageable. But at last, the deal has been completed and legal process complete!

Speaking of his experience through the negotiation and legal process, Darren says, “Based on previous experiences, I had expected this process to be lengthy and given the construct of the agreement and the changing company structure and loan guarantees it was always going to be that way. That said, both because of the work put into the MOU and also because the 2 legal advisers where pragmatic and efficient, I did not feel the process was held up due to much additional legal negotiations and inefficiency’s which can often happen.  I think the legal company recommendations from you turned out to be a big plus.  The only niggle was that both solicitors were very busy with other clients so sometimes there were longer response times than I would like to have seen, but in my experience, this is sadly normal for legal companies.”

 

 

Summary

When asked about her working relationship with Franchise Resales, Charlotte said, “I think I could have done with taking more advice from other professionals along the way for ways to package the business up and negotiate ideas …The communication regarding negotiations were dealt with very attentively by Michael, morning, noon and night! He always gave the time that was required and positively progressed the sale at every stage.”

Darren states, “I believe your business played an essential role in the sale. I found you very easy to work with, prepared to listen and understand concerns and try and work to push things forward.  I would also recommend your business to others.”

Working From Home Successfully

Working From Home

Working from home, at least for the time being, is a requirement for many businesses. Whilst many of you will be accustomed to working in an office environment or even out and about meeting clients – this change may come as a bit of a shock. So, it’s also important to have the right tools and to have plenty of self-discipline in order to use the day productively.

 

Here are some tips to help you stay motivated, retain work-life balance and even maintaining good video conferencing etiquette.

 

Set Up a Workspace

 

Firstly, lay down some boundaries. Where does your working day begin and your home life end? Ensure you have a dedicated workspace, whilst it might be appealing to work from bed, it won’t necessarily help you to be productive. If you don’t have a home office, set up space for yourself where you can create a productive work environment that separates your work life from your home life.

 

Use Video Conferencing

 

Video conferencing is a must! If you haven’t already utilised it – now is the perfect time. Not only does it allow you to continue to run your business safely, there is also the added bonus of conversing with others outside of your home during this difficult time. Email and instant messaging are useful, but they don’t replace face-to-face meetings. We have utilised Teams for our staff meetings for some time now, but since the restrictions were implemented, we have found that using video calling software such as Zoom for our clients has allowed meetings to go ahead, that would have otherwise been cancelled.

 

Schedule Your Work

 

Research shows that sticking to a schedule with good routine and structure is essential. Planning out your day, including your online meetings, your dinner hour, even your daily exercise – is a vital part of successfully working from home. Don’t be tempted to keep pushing that snooze button; oversleeping has been shown to dampen your cognitive function in the same way that sleep deprivation does. Using scheduling software or even just an online calendar will help you to stay on track with all of your tasks from day to day.

 

Improve Your Internet Access

 

Check your internet connection. If you are struggling to work effectively you might want to speak to your provider and find out what they are doing to boost your connection during this time. If you’re working from home for a long period of time, you may want to reconsider your internet connection. You need enough bandwidth to get your work done and stay in touch with people.

 

Dress for the occasion

 

Whilst you might be tempted to stay in your pyjamas all day, it is important that you dress for your job. Not only will you look better on video conferences in your work clothes, it will also help your brain to enter work mode. Getting dressed for work allows you to make the transition into work a little easier than if you are just getting out of bed and switching on the computer.

 

We hope these tips will help you with your working day! They have certainly helped us!

Finding The Perfect Franchise Resale

Finding The Perfect Franchise Resale

A franchise resale can be a great opportunity for anybody in the market looking to own a business – a franchise is a much safer option than establishing a business from scratch. Not only is it more viable with the current economic situation, with a franchise resale you will be
provided with training from the franchisor, enabling you to grow a business that already has the foundations.

Below, you’ll find the steps that will support you in finding the perfect franchise resales:

Before choosing a franchise, you should define your goals and evaluate yourself. You should have a good idea of what you really want to achieve by owning a business. What hours would you like to work? What sort of things are you good at? What can you afford to invest? Asking yourself these questions will enable you to find options that are a good match.

Before you find a business, you will need to consider your financing option. It will be useful for you to know how much money will be available to you before you find a business opportunity you want to take advantage of. If you have an idea of your budget, you can look at businesses within your price range.

If you are planning on utilising finance to buy – you will need to have explored your options before entering legal discussions. We can assist you with this, we have contacts and relationships in the finance sector and can signpost you to the relevant organisation’s.

The franchise industry has a reputation for being able to withstand a recession. When looking for a viable business opportunity, looking for options that are recession-resistant is a good place to start. There are many businesses that will continue to do well regardless of the state of the economy. You should consider what products or services people always need.

Once you have explored all of your franchise resale opportunities, create a shortlist – we will help you to explore your options and identify businesses that suit your needs and goals in order to help you to make your decision. You can work with us at Franchise Resales to simplify the process and find the ideal franchise resale for yourself and your family!

Now you have an idea of a few businesses that you may pursue, it’s time to research the franchise and find out more information about the franchisor and their values. You should research their business success, franchisees as well as their fees and legal documents. Does it still meet your desired criteria?

If you answer ‘yes’ to the above – it’s time for you to visit the franchisor. You can ask any questions you have, find out about the franchise as a whole and meet people who will become your network. This is the final judgement time; pay attention to whether you are comfortable and happy with the franchise.

When speaking to existing franchises, ask questions! What are their lives like as franchisees? What is their average day like? What support do they receive? Are the startup cost projections realistic? How effective are the provided marketing materials? Make sure you gain a good understanding of what your life would be like as a franchisee in that network.

By now you should have all of the information you need to make an informed decision. To recap, your choice should match your financial resources, provide the right kind of lifestyle, use your skills and experience, be recession-resistant, and have lots of happy and successful franchisees.

What are you waiting for? Get in touch with Franchise Resales today on 01522 246811 and find your perfect business.

Are you thinking about selling your franchise?

Are you thinking about selling your franchise?

Are you thinking about putting your franchise on the market? Begin by asking yourself some of these key questions.

 

Why Do You Want to Sell?

 

A potential purchaser of your franchise will be curious about why you are selling – be honest about your reasons. There are many reasons for sales; your franchise may have been a short-term plan, to start a new business venture or to begin retirement. It might be the case that the sale is not planned – sudden illness or change in circumstances may force a quick sale. 

 

Additionally, it could be the case that the business is not the right fit for you; therefore, it is not performing as well as it could be. Whatever the situation may be, you need to have a realistic plan that you can present to a prospective buyer. If a buyer cannot see the potential – they will not invest.

 

What Are the Variables of The Sale?

 

Ensure that you understand what you are selling, as well as how much you want to sell for. Begin by putting together a list of assets connected to your business that will be included in the sale. You should also consider whether your business will be sold as an Asset Sale or a Share Sale. Value the assets that you have and make sure everything is in order before you enter the market.

 

If you are unsure about how much your business should sell for – enlisting the help of a broker is vital. We will help you to value your franchise; we analyse current market trends in order to give you a realistic price for your business. 

 

Finding the Right Time and The Right Buyer

 

When deciding on the best time to sell, consider whether you need to complete the sale sooner rather than later. A sale can take up to 18 months to complete due to a variety of factors, therefore, where possible it is important to allow enough time for the process. To ensure a smooth sale once you find a buyer, you should make sure that your business is in order. 

 

You then need to consider where you are most likely to find a buyer. There are numerous possibilities here, as well as the many ways you could advertise your business for sale. Alternatively, enlisting Franchise Resales to manage your sale means you can have a smooth sale from beginning to end, as well as advice on how best to prepare your business for the sale. 

 

Have a professional Prospectus of Sale

 

Providing a professional sales prospectus will allow prospective buyers to ascertain the information they need about your business; this is essential. Include the business potential, it will allow a buyer to envisage what they will benefit from acquiring your business.

 

A prospective buyer will perform their due diligence on your business – if you exclude any important information, a potential buyer will find out. Being open and honest is the best way to sell your business

 

For a free market appraisal contact us on 01522 246811.  

 

Exit Plan

Do Your Franchisees Have an Exit Plan?

Franchise Resales is 12 years old and most of our team members have been a part of the franchise industry for many more years. With a growing team of account managers, support staff and marketing, we can definitely be a valuable addition to your resale process.

We have worked with Franchisors and their Franchisees for 12 years to help prepare them for their exit from the business. Developing an Exit Strategy, to put it bluntly. Not only will an exit strategy help your franchisee to be prepared, but it will promote growth and help you – the Franchisor – to increase your own profit. We have sold a wide range of franchises for many different reasons, but one thing we know for certain is that having an Exit Plan puts franchisees in a much better position when the time comes to sell. Even if it ends up being an earlier exit than you or your franchisees would have liked.

We are resale specialists, we pride ourselves on our resale process which has been developed over the last 12 years and is absolutely proven to work. Selling a franchise is not an easy process, with so many parties involved it can get a little tense at times. During a sale, we liaise with all parties involved to ensure the sale goes as smoothly as possible. We see the sale through to the very end.

Our Vision is to help as many franchisees as we possibly can to get a return on their investment. When it comes to selling a business, getting the best price for it will depend upon how much planning was involved at the start. That’s why we are calling on Franchisors to ensure that their franchisees are as prepared as they possibly can be, and they will ultimately make more profit in the process.

Resales are a great thing for a franchise. Especially profitable ones. They show people that the brand is successful and growing, and with new franchisees come new ideas and a new zest for business.

Eventually, the time will come for all franchisees to sell, pass on or close their business. The more prepared the better! So we are offering Free Exit Planning Seminars. Whether your franchisees are just starting out or have been established a while, these seminars will help to confirm the message you are sending to them. “planning for the future is essential”

How does Exit Planning help your franchisees and you?

It’s an exciting time when your franchisees are getting their new business off the ground. Their time and effort is spent making all of the urgent decisions. Oftentimes an Exit Strategy is the furthest thing from their minds. But it’s at the point that they are buying their franchise that they should be thinking about their Exit Plan and it should be firmly embedded into their business plan.

When your franchisees know exactly what they want to achieve right from the very start of their franchise journey, they increase the likelihood of walking away with a return on their investment. As well as showing your other franchisees and prospective franchisees just how lucrative a franchise in your network can be.

Regardless of your franchisees reasons for selling their franchise, be it retirement, handing the business down to the next generation or selling to make a profit, a plan is needed. The more robust the plan, the better the chances of succeeding.

Of course, even the best-laid plans don’t always go smoothly. In the event of a franchisee needing to sell urgently, a franchisee who has thought about this at an early stage will no doubt have an easier time trying to sell their business than one who has no plan.

We know there may be changes along the way, but we also know that a franchisee with an Exit Strategy is likely to achieve a better price for their business than one who is not prepared.

Why not give us a call today and book your Free Exit Strategy Seminar you know it makes sense.

Minster Cleaning Services – Devon & Cornwall

Established in 1995, Minster Cleaning Services Devon and Cornwall is a successful and profitable business which has grown year on year and now has a turnover in excess of £580,000.

Client retention is excellent, and an active marketing programme is in place to win new business.

The business is located on an industrial estate with easy access to the main A38 artery which allows both counties to be serviced easily.

With the hard work and dedication of the franchisee this business now has over 100 contracts in place throughout Devon and Cornwall. This ready-made profitable business is for sale as the current owner wishes to retire.

A day in the life of a Minster Cleaning Services Franchisee

As a Minster Cleaning franchisee, no two days are the same. People management skills are essential in order to manage a large workforce of cleaning operatives, field supervisors and office staff as well as numerous office and commercial cleaning contracts.

The start to a typical day involves reviewing emails to prepare for any issues that may have arisen since the previous day. It is important to check if any cleaners haven’t turned in for any reason and then ensure that relief cover is put into place. Minster Cleaning Services branches aim to be the preferred choice for office and commercial cleaning services in the area, so it is important that clients have no reason to be dissatisfied in any way.

The next job is to deal with any outstanding quotations. Commercial cleaning is an essential business and a multi-billion-pound market in the UK. There are always prospective clients to chase up, as well as ensuring they have all the information about the service offering.

Minster has done particularly well in the healthcare sector since the requirement for all primary medical services to be registered with the Care Quality Commission (CQC) was introduced in April 2013.

Minster’s knowledge of implementing cleaning regimes and practices which comply with the CQC standards for registration has proved to be invaluable.

An important part of the working day involves visiting prospective clients to gather the information required to put together a comprehensive quotation for a commercial cleaning service tailored to their precise needs.

About Minster Cleaning Services

Minster Cleaning Services is one of the UK’s leading management franchise business opportunities.

Established in 1982, and now boasting a network of over 40 franchise branches nationwide, Minster Cleaning Services is the biggest and one of the most successful commercial cleaning franchises in the country.

With a Minster Cleaning Services franchise, you will receive exceptional support from an experienced and dedicated team, including marketing channel management and branch marketing planning, operational guidance, finance, IT and general support.

Do you need to own property to lend from a bank to buy a franchise?

Do you need to own property to lend from a bank to buy a franchise?

A question we get asked frequently from prospective franchisees seeking funding is whether or not
they will have to put their properties at risk when looking to borrow money from a bank. Banks will
refer to this as security and the level when this would be needed will vary from bank to bank.
Typically if you are looking to borrow less than £25,000 banks are happy to lend without security
being taken.

If you are looking to borrow in excess of £25,000 it is likely that the bank will require you to put up
personal assets as security for any loan agreed. This could be in the form of taking a charge against
property with sufficient equity. However, if you don’t have a property available, it doesn’t necessarily
exclude you from lending more than £25,000.

If you have a strong business plan and suitable deposit but don’t have any personal assets to support the lending, then the bank may be able to consider financing your plans using the Government-backed Enterprise Finance Guarantee Scheme. Sometimes referred to as EFG, the scheme is designed to provide entrepreneurs with the security needed to access greater levels of funding, as it would guarantee up to 75% of the amount you borrow from the bank. This scheme may require a slightly larger deposit and does come at a premium, as the government will charge an annual 2% fee for the guarantee. Speak to the bank’s Franchise Department for guidance as to whether you would be eligible for this scheme, as you would need to ensure that you have fully invested your available assets into the business before being eligible. This would include all of your personal savings and investments, along with any available equity in properties that you own. It is also important to remember that you would remain fully liable for the total amount being borrowed, as banks would also take guarantees from you as an individual to cover the full amount being borrowed.

It is essential to thoroughly research the opportunity and fully consider the financial implications
before buying a franchise. You are entering into a long term commitment and need to get the
funding right at the outset. Don’t try to press ahead with insufficient capital, putting unnecessary
pressure on the business from the outset, but don’t borrow more than you can comfortably afford to
repay.

Being the boss…

Since time immemorial people have been interested in running their own business, and according to The Office of National Statistics, in 2001 there were 3.3 million self-employed people in the UK (12% of the labour force) which rose to 4.8 million by 2017 (15.1% of the labour force). More and more people are looking to become their own boss and why not, the perks and flexibility are pretty great! However, there are also risks associated with being self-employed. Some of these risks can be dramatically reduced when you look into buying a Franchise, and reduced further still when you look to take on a Franchise Resale!

One of the many reasons people choose to become self-employed is the ability to be able to build up your business and then sell it on at a profit when you want to move on or retire. Depending on the type of person you are and the business sector you are in this can be achieved whether you are going it alone or becoming part of a franchise network. However, with a franchise network, you have the added security of the already proven systems in place that you can follow in order to reach your destination – selling your business as a going concern at a profit.

The benefits of buying a franchise over starting on your own include; training, established reputation, support team and the equipment & products required in order to run the business. But you also have the knowledge that someone has already done it and has been successful. However, you still need to build the business, you are starting from scratch, but with a franchise resale, the business is already there. Initially, you might have to pay more than you would for a startup, but you have the opportunity to make a profit from day one, the business is already up and running with the staff in place. What could be better?

Another fantastic reason to take the plunge and buy a franchise resale is that on top of the fact that you have a business that you can walk into, you will be trained by the Franchisor and experience of the sector is not always necessary. This means that, if you fancy a total career change there are plenty of options open to you! All without the risk of starting from scratch and going it alone.

You can eliminate the unknown. Starting a new business can be difficult as people often buy from a brand they know and can trust. Unless you already have a reputation where you plan to set up your business, you may find it difficult to find new customers and gain their trust. With a franchise resale, the business usually has a regular customer base, and you have the brand recognition to back you up as well.

According to research 8 out of 10 new businesses fail within the first year. In contrast to that according to the NatWest and British Franchise Association survey, 95% of franchisees report profitability. From a finance point of view, these statistics are very important. A start-up can be very difficult to secure funding for. However, banks do look rather more favourably on franchises as your business plan can include more accurate projections based on the franchisor’s experience. With a resale, you have the outgoing franchisees history behind you too.

The franchise sector has a fantastic array of business with proven models for success. You can become a part of this lucrative industry. A franchise resale means that you can become your own boss, walk into a business that’s already up and running with the training and support from a franchisor.

Run your own business with freedom and independence but with guidance and structure that has been proven to work many times over.

Contact us on 01522 246811 to find out more, or take a look at the franchise resales we have at www.franchiseresales.co.uk/franchises-for-resale/.