If you are looking for a way to manage your own business with the safety of a tried and tested formula buying into a franchise might be the perfect option for you. Franchises inject £17 billion into the UK economy every year.

Here are five tips to consider when choosing which franchise is right for you:

1. Is buying into a franchise the right choice?

Franchises allow you to open a business under well-established branding. This removes the fear of your new venture opening to poor reception, but it's not a career path suited to everyone.

Buying into a franchise does not mean you own the right to do whatever you want. You must adhere to the rules set out by the franchise founder and, in some cases, you may not agree with them. However, you will have some autonomy in how your business operates; so it's a good choice to meticulously go through contracts before buying-in. What decisions are yours and what will be dictated to you?

2. What type of business do you want to operate?

Many people assume franchising is only about fast-food chains and coffee shops. But this couldn't be further from the truth. The structure of a franchise exists in most products or services, so you may not notice that some of your favourite businesses are part of a larger franchise.

Consider how you want to work. Your desire to buy into a franchise may be entirely for monetary gain, to take on an entrepreneurial career or even the freedom to spend more time at home with your family. Ask yourself what level of interaction you like with your customer base. Will you do the work yourself, or do you plan on employing others?

Once you think outside the box you can choose a franchise that best aligns with your lifestyle or preferences.

3. Does the franchise suit your long-term goals?

Take the time to evaluate your long-term goals. Create a business plan which includes where you want to be in five or ten years. Once you know whether being your own boss, a steady income or growing your income and franchise business with multiple locations is the aim, you can look for an option that suits your vision. A franchise with plenty of room for scale-up and growth may or may not be what you aspire to.

As part of your plan, work out the projected revenue and associated costs using guidance from potential franchisors. Are you happy with the profit margin? When buying into a franchise, your income and personal finance situations may be affected at any point after purchase, so have a clear idea of your potential earnings before signing contracts.

4. Does the franchise play to your personal strengths?

A significant aspect of buying into a franchise for many people is a genuine passion or interest in a particular field. People with specialist but widely required skills such as beauty technicians, bakers, commercial cleaners, or even accountants can easily transfer their skills to working for themselves. A genuine interest in the business is a must if you are planning on running a franchise.

Choosing the franchise route, provides the branding and trusted atmosphere for potential customers. It cuts out the process of building up a new brand and customer base following for those with the skills but who are perhaps nervous about attracting business.

5. Do you get adequate support from the parent brand?

Once you have narrowed your choices, it's time to look deeper into the parent brand's ethics, structure and support. This means speaking with the franchise management to discuss the finer details of what you can expect. The relationship between the brand owner and franchisee is important as you need to work together to maintain the integrity and success of the business.

The original owner wants someone who will keep up the high standards that customers expect from the brand. For the franchisee, you want to work with a business that offers sufficient support and development. It's time to question whether you like what they do, how they promote the business and brand as a whole.

Finance options for franchisees

Consider the financial support the parent brand will provide and what you are bringing to the table. How much will the franchise owners help you get off the ground, and what do you need to start? Ask about buy-in fees, required investment and expected ongoing costs. Who will be promoting your new franchise, are there ongoing marketing costs and are they compulsory?

By implementing these tips, you can find a franchise that will unlock your potential as an entrepreneur. When you're ready to take the next step, find out more about how we can help cover buy-in fees and fit-out or equipment costs with franchise finance from Portman.

www.portmanassetfinance.co.uk/franchise-finance/