Franchise opportunities tend to be based on a "Founding Father" with a good reputation for innovation.  In terms of Franchised businesses, their reputation prompted others to follow and so Franchise Networks were born - with something like a 20% - 30% fee from ALL income going to the Franchiser.


As with all Franchise businesses there comes a time when the Franchising is way more important than the original Tutor business.  If you care to check any corporate Franchiser advertising, you'll rarely see ads aimed at generating Clients for their franchise businesses, only ads intent on pulling in more Franchisees.  That's the only business they're into.  You.  Your money. Whether you fail or succeed, they get your money.  If you succeed, they get more money.  If you fail, they’ve had all of it.


In the present day they compete with each other in establishing "Territories" but without co-operation; one can be selling a territory on top of another. They might also be competing with other providers in the same area too, including ex-Franchisee's territories.  


If you are considering a (new) Franchise opportunity with anyone, ask this question and get a formal answer in writing:


"What activities have your Franchise business and business partners been involved in, within 5 miles of this area, in the last 10 years?"

Don't be surprised by deflection and obfuscation.  Don't be surprised, just walk away.


Another good question is, "What market intelligence do you have for this area?"

Don't be surprised by a pretence to not have any real marketing intelligence; don't accept you should be able to earn so many thousands of pounds from the allocated territory, or a statement about being fully trained in this after you've paid your Fees.  Don't be surprised; don't accept they'll fully inform you later.  Just walk away.  If they can't, (or won't,) inform you of their traditional customer base and how that socio-economic demography is represented in your proposed territory, what are you paying them for?  Use the term, “Central to the Contract,” for this, and preferably in writing.


Why are we advising this?





Continue

Tutor Business services

Home Starting up Franchising Correspondents Advertisements