Kids franchises have to be one of my favourite franchise opportunities on sale in the UK today. Quite simply they are all bright, fun, loud, in your face and in all cases I have seen, run and managed by caring and considerate franchisors.
Ranging from education franchises through to care, sports, music and arts there are a multitude of options to choose from.
Deciding on which one is for you can be difficult so really it’s a case of matching your own interests with your investment level to the corresponding franchises to narrow your list down some. Hopefully after doing this you will have at least 3 to ponder over. From here it is time to get a collection of franchise packs and begin your research.
With your 3 + packs in hand, review the procedures, training options and monthly management / license fees and weed out any which are immediately unattractive to you. What you should be left with are your prime choices and it is now time to contact the franchisor direct to organise a meeting.
Come prepared! Before you go write down a list of questions, some / all of the following should be included:
1. How long have you been in business / how long have you been franchising? Reason: You want to establish 2 things. 1, was the business a long term profitable company BEFORE they franchised or were they a “made to franchise” business and 2, Are they a new company starting out in franchising, if so then they may well be a little inexperienced.
2. How many current franchisees do you have and can I have a list of ALL their contact details. Reason: You can pick a few at random to phone and ask them about their experiences, the ups the downs etc.
3. How many franchisees HAVE you had… i.e.. What is the turnover rate of franchisees. Reason: A turnover rate shows an unhappy franchisee base.
4. Out of the current franchisee list, how many are profitable according to your financial projections? The reason for this is: Some franchisors boast a large franchisee base but this could be due to their selling powers and not the profitability of the franchise.
5. What is the policy on
a) Territory size
b) Exclusive territory
c) Reselling my franchise
6. What previous companies have they owned and were they franchised businesses too. The reason for asking this is: Are they in the habit of creating businesses to franchise, making some money and moving on leaving their franchisees in limbo. Yes, this happens.
7. What marketing campaigns are done on my behalf and what will I be required to do myself? Here you are looking to learn more and national advertising done by the franchisor and what systems they recommend for local advertising.
These are just a few questions and you will have many you will want to ask however I would recommend getting the answers to the above so you can feel sure that this is a long term opportunity for you. Franchises are not a cheap option by any means; however either is setting up a business from scratch. You are going to be spending anywhere from £8,000 to £250,000 of your hard earned cash or loans so you really want to be sure you are spending it in the right place.
All that said – I could not recommend more a sector of the franchise industry to get involved in that kids / children based franchises. Definitely a respectable, fun and profitable option
About the Author
Matthew Anderson is a franchise consultant and founder of The Franchise Shop, a UK business franchise directory featuring Kids Franchises