Apologies if this one has been asked before, but I'm new on here and can't work out how to do a search on previous threads...
I'm employed at the moment and looking to go it alone so that I can have more flexibility and time for my family. I keep to-ing and fro-ing with whether to go it alone or take up a franchise. Is anyone on here part of a franchise, and if so, how is it going for you?
Obviously the franchise costs are very off-putting, and I would have to take out a loan as I don't have a spare £18k or so knocking round in my back pocket. The appeal to me is that being part of a franchise they would teach me how to sell myself, and they would point me in the driection of which clients to approach and how (I think).
Obviously the websites say that many of the franchisees are operating above projections, but as I've never met any of them, I wonder if that is strictlty true...
Is there any way that I can obtain some kind of business directory myself if I were to try going it alone, or is it a case of wading through the yellow pages?
I don't use the site search facility but rather go via google to look for old threads where I know generally some of the unique words that would have been in there (so no point doing a search of the site for SAGE!).
So, if I wanted to look for old threads with AAT and ACCA in them I would do something like :
site:book-keepers.org.uk book-keepers forum acca aat
Actually, this might be a good subject for you to practice on (just replace "ACCA AAT" with "Franchise").
There have been some Franchise nightmares reported with franchisors taking peoples money then giving basically nothing in return.
Crunchers is a franchise worth looking (don't misconstru that as advice. You need to do your own research before making any decisions). And they come in at less than £18k. Check out Bobs website for the various packages that are on offer and then use that as your yardstick to compare to other peoples offerings.
Unfortunately where people have had problems with franchises they often suffer from not being able to talk about it due to their franchise contracts. Best is to look for the positive stories rather than the negative ones (although people by nature are always more willing to complain than compliment so a lot of info is missing).
Maybe if there are some franchisee's with positive stories they might post responses to your message... Just need to watch that it's not a cunningly disguised franchisor bigging themselves up.
One thing to watch is where the franchisor makes more money from selling franchises than services. That's not a definite sign to avoid as some franchisors become too busy to run their own business as well, however, it is a point to bear in mind.
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Although I am a franchisor I thought I'd share my opinion on this one. I'll do my best to be impartial.
As regards fees, I'd recommend you consider the management fees rather the initial fee. For example, 10% of your income is a lot over the lifetime of your business.
I am sure that if you do apply to join a franchise you will be able to speak to one or more franchisees. But, in my opinion the level of success of one or more franchisees in a bookkeeping/accounting operation doesn't mean a lot.
The reason why I say this is that with bookkeeping/accounting the operator is so important. That is why no franchise offers a guarantee, although we are looking at this.
Out of interest, what guarantees would you like to see?
However, I think there are two sides to exploring if a franchise is right for you, the emotional and business logic. The emotional side is wanting to do everything your way and have your own brand. The business logic side is collaborating with likeminded people, sharing knowledge and working together for mutual benefit, perhaps even sharing revenue.
If you favour business logic, do your research and see which one fits your requirements best.
Personally, as the market becomes more and more competitive I see more people forming/joining groups and networks. The Internet encourages this but for me there needs to be a commercial drive behind it. This is why I see franchises being more important in the years ahead in all industries.
Shaun makes a good point that running a franchise is a different to running a bookkeeping/accounting business.
I don't think that I'm looking for any guarantees really. Simply assurance that other franchisees have been able to make a success of it. I appreciate that the success is totally dependant on the operator, but I think after 20 years in accounting and senior management, if other people can do it I'm sure I could.
My main aim is to be my own boss. Whilst the thought of going back to something more basic like bookkeeping does appeal to me, I would much rather be out there doing something a little more challenging (and employ someone else to take care of the basics).
After considering your 2 sides - the business logic does appeal to me more. I have no desire to build up my own brand and do it all my way. If there's a system out there that has been tried and tested, and it works for some, why not follow suit?
I think that convinces me that I should explore franchises further. Now just need to research them and decide which one...
With your background I would suggest you offer a higher value proposition than just bookkeeping. With new technology like Xero you can be more of a management accountant and business coach.
