Top 10 Questions That All Successful Franchisees Should Ask
Top 10 Questions All Successful Franchisees Should Ask + A Special Gift
The next installment of our Top 10 series to celebrate EweMove turning 10 is here!
This month our Head of Recruitment Hannah Pepper shares her insights into the Top 10 questions that all successful franchisees should ask either themselves or the franchisor they are thinking of partnering with.
Hannah has spoken with thousands of franchise enquiries over her years at EweMove - carefully ensuring only the best applicants make it through our recruitment process, we hope you find her insights helpful.
1. Why Join a Franchise?
Lots of people I speak with are torn between joining a franchise or starting a business on their own. Whilst franchising isn’t right for everyone, what a franchise gives you is a proven system to follow, which lowers your overall risk. This is especially helpful if it’s a business or industry that you’ve not operated in before as full training and support should be given as part of your initial franchise fee.
Certainly at EweMove, the other huge advantage of a franchise is that you’re joining a community of like minded, entrepreneurial people. We like to encourage networking and mentoring within our network and we have several ways of doing this.
2. Does the Business Make Sense?
The British Franchise Association (BFA) reported there were 935 franchise opportunities in the UK in 2018 ranging from multinational brands to new start ups.
With so many different business opportunities spanning many different industries it’s important to go back to basics and ensure that you really understand what the business is and how it will operate!
What does the business model look like?
How big is the market?
Can you generate residual income?*
*This is probably the most important point! For EweMove franchisees, residual income comes from property management. This residual income gives franchisees peace of mind, it helps with cash flow and builds value in the business which can then be sold when you want to exit.
3. Does the Business Make Sense for You?
Consider the investment required, not just the initial cost to buy the franchise but working capital requirements and how your living costs will be covered while you get things up and running.
You should be comfortable with the risk vs rewards. Can the franchisor demonstrate a realistic cash flow projection and break even point?
Will your new business fit with your lifestyle? For example if you live in a flat and you require lots of stock, where could this be stored? Do you have a young family to look after, how can childcare fit around your business?
4. What’s the Shelf Life?
We believe one of the best things about the EweMove franchise is that working as an estate agent in the property market means you’ll always have customers that will need your services.
Yes, the property market can fluctuate but people will always need somewhere to live which is why we encourage franchisees to start with property sales and steadily build up a portfolio of managed rental properties - so they have both bases covered whether the market is more in favor of sales or lettings.
I’d caution against investing in a franchise that’s part of a trend or topical right now - what will the demand be like in 3, 5 or 10 years time? Or looking at it from another angle, is a traditional style of business still going to be around in 5 or 10 years? Just think of some of the big brands that are no more = Blockbuster and Toys R Us.
5. What Do Others Say?
Naturally you’d expect the franchisor to speak highly of their opportunity so it’s really important to get the opinion of others.
Does the business have any award wins and recognition from their industry? What do existing franchisees say about the business? Can you speak to any franchisees, or only a select panel? And most importantly what do current customers have to say about the business? All of these views will help you make an informed decision.
Over the years EweMove have won almost 40 industry awards but it’s our customer reviews on Trustpilot that we’re most proud of, if you haven’t already you can take a look at the +17,000 reviews we have here.
6. What About What REALLY Matters?
Knowing your numbers and the business model is important but it’s also important to think about how being a franchisee in the business will really make you feel? Is it a product or service that you can be proud of?
What do your significant others think? Not just your wife, husband or partner but your children and friends. It’s easy to get swept along, but investing in a franchise is likely to be a 5 year commitment so take the time to sense check and make sure those closest to you are onboard.
7. Will You Do Whatever it Takes to Succeed?
Starting a business is hard - harder than most people think it will be.
It takes time, dedication and perseverance and you need to be prepared to push yourself out of your comfort zone!
At EweMove we specialise in taking people from outside of the estate agency industry, empowering them with lots of training and support to challenge their local competitors - we know we can do this well but what makes the biggest difference to the success or failure of a franchisee in my opinion is their attitude and willingness to do things differently and act on the advice they are being given.
8. Growth, Scale and Exit Plans?
EweMove franchisees have the option of being a solo operator, building a small team or being a multi territory owner - it all depends on the individual's aspirations and we’re happy to support everyone.
Make sure you understand the options available to you to grow and scale your business should you want to and also what your exit plans could look like.
With EweMove you’re building a saleable asset and we’ll also help you find a buyer when the time comes for you to cash-in and retire.
9. Ask The Difficult Questions
Most franchise agreements are for a 5 year term so it’s really important to feel comfortable with all the answers and information you’re being given.
You shouldn’t feel rushed or pressured, you should be able to speak with existing franchisees, see what their numbers look like and you should always ask about the franchisees that fail - how many have there been? Why did they not succeed and what was done to help them?
10. What Do Franchisors Want?
When I speak with a potential franchisee I like to imagine that person coming to value my house, would I feel comfortable and confident in their ability? Do they come across as honest and trustworthy - which are some of our core brand values. Can they show me determination and entrepreneurial spirit to be the best?
It’s a combination of these factors and a passion for great service which makes EweMove agents truly stand out from competitors that might have worked in the industry for many years.
Property is all about people not houses. EweMove is a people business too. We have a partnership between franchisor and franchisee because we only earn when our franchisees do, so our success is dependent on each other.
We know we can support and train in all areas of estate agency but we need to have the right people to work with in the first place.
Our Gift To Ewe
We’re eager to continue to grow the EweMove brand and partner with more people looking to make a change in their careers as we celebrate our 10th year in franchising.
For those that join us by the end of March, you’ll benefit from two FREE EweMove Annual Conference & Awards tickets with overnight stay and a supply of FREE Marketing materials for your launch including leaflets, books and brochures!
This offer is available to anyone who completes the recruitment process and signs their agreement before the deadline.
This offer will expire at 12pm on Wednesday 29th March.