Should you buy a franchise?

James Todd & Co can provide advice to start-ups in the Chichester area who are considering buying a franchise.

Franchising is growing in popularity in the UK, and can be a profitable way of doing business. However, there are advantages and disadvantages.

The process involves the licensing of a business 'blueprint' by a franchisor, to a franchisee. The franchisee buys the rights and obligations of the business, using the brand and operating the system provided by the franchisor, while the franchisor retains the overall control.

The benefits

By buying a franchise you can take on a brand which has a successful reputation and working format, thus reducing the risk of failure.

As a franchisee, you will receive initial training in running the business, as well as ongoing support, which might include advertising and promotion, administration services, and product development.

The limitations

The amount of scope to run the business your way will be limited, so you should make sure that you are happy not to have complete free reign over the business management.

You must also consider the costs involved in the venture: for example, you will need to budget for stock, premises, and management service fees.

What you need to do

When considering taking on a franchise, you must consider the structure of the business, and examine its accounts carefully, with professional help, in order to ensure that the business is both viable and financially stable.

You should also do the following:

  • Research the market for your proposed franchise
  • Calculate your projected earnings
  • Find out exactly which kinds of support are being offered by the franchisor
  • Consider any conditions that may be imposed, such as minimum sales levels.

You are strongly advised to take professional advice before entering into a franchising agreement.

If you are a start-up in the Chichester area and are considering buying a franchise, contact James Todd & Co for further advice.

Have we convinced you yet?

Please feel free to get in touch via phone, email or our quick contact form.

We offer initial free consultations – simply contact us to find out more.


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Please call:
01243 776938
Lavant and Chichester
01273 470123
Lewes

Address
James Todd & Co, 1/2 The Barn, Oldwick, West Stoke Road, Chichester PO18 9AA
James Todd & Co, 16 Northgate, Chichester PO19 1BJ
James Todd & Co formerly known as Axtons, The Mews, St Nicholas Lane, Lewes, East Sussex BN7 2JZ

James Todd & Co is the trading name of James Todd & Co Limited. Chartered Accountants and Registered Auditors. Registered No: 07350649 in England. VAT No. 322087875. ICAEW Firm Reference No: C002730145 and James Todd & Co (Lewes) Ltd (formerly known as Axtons). Chartered Accountants. Registered No: 11214467 in England. VAT No. 290460506. ICAEW Firm Reference No: C005791297

Registered to carry out audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Details of our audit registration can be viewed at www.auditregister.org.uk

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