Entries by Hamilton Pratt

I know Franchisors provide Franchisees with support in the start-up stage, but do they also provide assistance once the business is established?

Absolutely! The whole point about franchising is that you are not in business by yourself and the franchisor is there to help you with all of the issues that may arise in your business whether those issues are of a technical nature or they relate to general business issues that would affect any business such […]

How can I tell if my business is franchiseable?

Almost all businesses are franchiseable except for those that are likely to have a short shelf life because they are a fad or because they are of a highly technical nature which it would be difficult to teach franchisees. That of course is not to say that it would be a good idea to franchise […]

How is my compliance with a Franchise system measured?

When you enter into a franchise you will be required to comply not only with the terms of the franchise agreement which can be an extremely lengthy and detailed commercial contract, but you will also be required to comply with the operations manual and the franchisor’s instructions. It is central to franchising that franchisees do […]

What upfront fees do Franchisees have to pay?

With very few exceptions all franchise agreements require new franchisees to pay an initial fee to the franchisor on entering into the franchise agreement. The initial fee reimburses the franchisor the substantial costs that the franchisor would have incurred in recruiting the franchisee as well as paying for the initial training, stock, equipment, vehicles, uniforms […]

At what point during a five-year franchise agreement should a franchisee begin to make a profit?

The great majority of franchise agreements in the UK are granted for five years but some franchises which involve very substantial initial investment last longer so that, for instance, a McDonald’s franchise agreement has a twenty five year term. The reason for the longer term is many fast food franchises is that it takes substantially […]

Can I invest in a franchise with a business partner?

Generally, franchisors do not like pure investor franchisees because one of the reasons that franchising works so well in ensuring businesses are successful is that franchisees are actively involved in their franchise business and have a real interest in ensuring that the business is a success. If the franchisee is simply an investor that personal […]