There is no doubt about the fact that acquiring new franchises UK can be a terrific business opportunity. However, there are several warning signs and instances where you are better off not opting for that franchise.
If you’re not sure what a franchise is, why not find out what is a franchise.
Don’t purchase a franchise if you notice one of these warning signs:
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A Demanding and Strenuous Sales Pitch
Worthy and successful franchises UK have to uphold their reputation. When you are considering a franchise, you want the franchisor’s representative to give you full and detailed information. But if the representative seems to put pressure on you to for you to sign respectfully take your leave.
2. An Unstable Past
Thanks to today’s fast technology, all you simply have to do is some Google search, and you will be able to confirm the kind of reputation that franchises UK company has. Just by a little research, you will be able to discover if there is any history of legal issues with the company. Or if there are any other franchisees who have complaints about the company. You may even find out if the franchisor has experienced grave financial trouble. Although you can’t expect to find a company that has no negative reviews or hasn’t been through a rough financial situation, but if you notice a troubling trend, it will be better for you to stay away from such franchises UK.
3. High Franchisee Turnover
If you take a look at the Franchise Disclosure Document, Item 20 will report just how many franchisees left a franchise structure in the past three years. The less expensive it is to join a franchise, the higher will be the turnover rate. You should these factors as warning signs to not opt for such franchises.
4. Inadequate, Missing, Or Incomplete Paperwork
The sale of a franchise is greatly regulated on a federal and state level. As a franchisee, you should receive some important documents such as the Franchise Disclosure Document. In the situation where any important documents are missing, if they seem unprofessional in content or appearance, or how they’re worded is intentionally vague, there is a good possibility the franchisor is keeping something from you.
5. An Unsatisfactory Training Program
There are many franchisees who have never worked in that particular industry, nor have they ever owned such an establishment to get it in control and ensure profitability in a period of time. For that reason, franchisees are given a franchise training program that helps them understand how to successfully manage and run the franchise.
However, if the proposed franchise training program seems to be hurried, inadequate, drawn out, too long or too short, you will not be satisfied to move forward with acquiring the franchise. The least you will do is talk to a franchisee who has taken the program. If you still are not comfortable, its better you don’t move forward.
Find the work-life balance you always wanted. Get in touch with Quality Franchise Association for more information on how to become a franchisee.
