Skip to content

Entrepreneurs Panel

Tony Caldeira
Laura Tenison
Julie Meyer
Richard O'Sullivan
Brian Hay
Charlie Mullins
Michael Oliver
Debbie Pierce
Steve Purdham
Jeremy Roberts
David Pollock
Jennie Johnson

Getting into the franchise business

Question: 

I currently run a couple of grocery shops and a contact of mine has asked if I would be interested in going into business with him running a franchised grocery outlet. What are the basics I need to consider before making up my mind?

Answer: 

Firstly, if you are going into business with anyone it is imperative that you agree a comprehensive “shareholders agreement” before you become a commercial entity. This is effectively a pre-nup. Agree it, put it in a drawer and hope neither party ever has to refer to it in the future. Despite the cost, this agreement should be prepared and fi led with both parties’ solicitors.

There are some very successful franchise operations across the grocery sector. Ensure that you carry out your own “due diligence” by visiting other franchisees within this organisation to get a feel for
both the strengths and weaknesses of this particular franchisor.

Franchising is an established business format nowadays, so tap into the online advice of the various franchising associations and establish/ consider the common pitfalls that franchisees experience.

Prepare your own business plan and be sure to put some thought into what you wish your journey and end game to be.

As with most things in life, remember it’s much easier to get into things than it is to get out of them!

  • Kathryn Parsons, co-founder of Decoded, started with little more than faith and determination, but four years later it’s grown into a global business. Ahead of her appearance at Accelerate 2015 in...

  • Author, writer and marketer Ryan Holiday on how entrepreneurs need to interpret failure.

  • Sue Vizard, business coach and author of Jump Start: The Start-up Book for Your Dream Business, looks at some of the questions solo entrepreneurs should ask themselves.

  • Ian Wright, founder and chief executive of NonExecutiveDirectors.com, is bringing together SMEs and NEDs - without the hefty recruitment fees.

  • Former professional golfer turned entrepreneur Colin Stevens has had a busy 18 months. The Better Bathrooms founder has increased turnover at the firm, secured a multi-million pound investment and...

Five Minutes With

Like Sir Richard Branson, entrepreneur Eric Everard's first business was a student magazine.

It took Richard Shonn, managing director of 151 Products, three years to find a warehouse big enough for his requirements.