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Entrepreneurs Panel

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

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!

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