Should I Avoid New Franchise Opportunities Which Have Only Just Signed Their First Franchisees?

Nigel Toplis:

Every business and every franchise has to start somewhere and it would be unfair and wrong to dismiss a business opportunity simply because it is in its first stage. That said, you do need to be extra vigilant and spend even more time on research. The approach I would adopt is as follows:

* Examine the business concept rather than the fact that it is a franchise: Does the concept have resonance? Is there potentially a strong market? Can you see a repeat purchase from customers?

* If the first point passes muster, then research the franchisor: Do they have experience in franchising? What is their personal background? What research did they put into the concept before launch?

* If you’re still positive then look at the actual franchise package: What do you get for your money? How much training, marketing tools and ongoing support will you receive?

* Finally, quiz existing franchisees, if there are any, on the biz and most importantly, on the support given by the franchisor.

As a final point of reference ensure that the franchisor is a member of the British Franchise Association, or is at least progressing to membership. Other’s opinions on the subject.