GET OUT OF YOUR BOX

It's time you looked more closely at the abounding franchise opportunities out there right now. Start thinking outside the box.

With the Irish Franchise Exhibition coming up, along with various regional seminars, it's the season when franchisors are on the lookout to meet up with potential franchisees to expand their networks.

The franchise sector continues to flourish here as a feasible business option for entrepreneurs with unremitting increases in the numbers of operating franchises and foreign owned franchises entering Irish shores. An increasing number of American owned franchises are beginning to infiltrate the scene with the US a dominant source of franchises in Ireland, now accounting for over 40% of the market.

According to Irish Franchise Association (IFA) Chairman, John Green, "franchising is a viable option for budding entrepreneurs given its far better success rate than starting businesses on their own. It is also an attractive model for existing business owners thinking about expansion." In terms of the employment it creates and the wealth it generates, the franchise sector is now well established and an important contributor to the growth of the Irish economy. Clarifies Michael Bradley, CEO, IFA, "the recent growth in franchising, 12% per annum on average, looks set to increase through new franchisees setting up their own businesses, through existing indigenous businesses using the franchise model for expansion and through new non-Irish franchises entering the market due to our strong domestic economy."

FRANCHISE MAGIC

So is franchising set to become a dominant force in the Irish economy? As a halfway point between working for oneself and somebody else, success in franchising is all down to commitment and to effort like any business endeavour. While a franchisee can never completely call the shots, they are still in a strong entrepreneurial position to develop a business, to strengthen employment opportunities in their locale and to make an impact on the changing face of the indigenous sector potential on the island.

The IFA has detected a significant increase in membership with 5,500 visitors to its national exhibition last year and an ever-increasing proliferation of Irish businesses examining the franchise option. Affirms Bradley, "we estimate that there are now 240 plus franchises operating here with a total turnover of €1.6 billion (business format franchises only) and employing some 22,000 people."

This year's Franchise Exhibition looks set to draw in more candidates for the franchise business option. Taking place over two days at the RDS in November 2005, the exhibition will provide a strong networking opportunity for future franchisees to obtain information on what's available and for existing franchisors to expand their critical mass.

FULL CONVICTION

One pitfall that people often fall into is that they mistake a business opportunity for a franchise. Clarify this from the outset and speak to other franchisees in the network to minimise the likelihood of making major miscalculations or errors.

When checking out franchise opportunities, knowing what you want is half the battle. There's no point in investing in and committing yourself to a franchise if you do not have an affinity with the product or the service. While self belief is an essential factor when growing any business, a conviction in the franchise itself and its future promise is essential.

ALL IN THE PLANNING

So how do you go about choosing a franchise? Firstly, it is necessary to examine yourself. Know where your expertise and talents lie and how you can apply them to a franchise. This will make it easier to choose an operation that best suits your own personal drive and will ensure that you will have conviction for a particular franchise brand. Be realistic about your expectations for the franchise operation against your own personal, financial and familial needs. Assess whether you have access to investment and the required energy and commitment to put in the work, especially in the early years. Talking to existing franchisees is also important. Visit or talk to franchisees and try to build a rapport. This may take some time but, through talking to franchisees in business, you can investigate the ongoing support areas that continue once an agreement has been signed. Determine what types of relationship franchisees hold with the franchisor in general.

Once you have exhibited strong interest in the franchise, the franchisor should be in a position to answer the following fundamental questions on earnings. It is vital to determine how much money an average typical unit makes after a specified length of time in business. You should also try to find out how soon a typical unit starts making money after opening.

LEGAL JARGON

As with any business start up, there are risks and it's absolutely crucial that a person is aware of the legal aspects of the franchise in question. Prior to committing, it's important to scrutinise the franchisor's legal position. Know the franchise contract inside out and determine whether this franchise will have a long term market standing or whether the outfit is fashionable for a temporary period. Be informed of your initial and ongoing obligations as a franchisee. You should locate a solicitor who is experienced in dealing with franchises. Make contact with existing franchisees and glean some insight from their experiences. Recognise that even though the franchise is a proven brand, there is a possibility that you might not succeed.

MAGNETS

The Irish Franchise Association organises and holds the Irish Franchise Awards to recognise the outstanding achievements of businesses and individuals in the growth and fruition of the franchise industry on the island. This year's awards will take place on 4th November 2005 where leading figures from the franchise and business world will be in attendance. At the inaugural ceremony last year, awards went to O'Briens' Irish Sandwich Bars, Snap Printing, Four Star Pizza, Sliderobes, Lemongrass Restaurants and The Bagel Bar.

The 2005 Irish Franchise Exhibition also promises to be a vibrant event with opportunities for franchisors and up and coming franchisees to network. High quality franchisors will be offering prospects in a wide range of business sectors from management consultancy and recruitment, cleaning and confectionery companies, to food and drink and health and fitness. Investment potential will range from €7,000 to over €1,500,000 and this is an event not to miss for those seriously considering the franchise route!

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