Become a letting agent with a Belvoir lettings franchise
Belvoir's Chairman, Mike Goddard, was Chairman of the British Franchise Association for three years in a row. Being at the heart of the bfa ensures franchisees know we must adher to the code of ethics of the Association.
Please click on this link of Mike, as he was being interviewed by FranchiseSales.com http://www.youtube.com/watch?v=zdOnSvP6rk4
Please click on the links below for useful information on franchising and lettings:
Questions you need to ask any franchisor
Lloyds TSB advise all potential franchises that they ask the following questions of the franchisor .. we will be proud to answer any question fully and in detail.
Common sense will take you a long way in deciding whether the franchise you are considering will prove right for you. We’ve prepared the following questions to help you evaluate a franchise before deciding whether to invest. Please bear in mind that this list is for your guidance only and it is not exhaustive. You’ll still need to rely on your own judgement before investing in a particular franchise.
1. How long have you been franchising?
2. What professional support have you had in developing your franchise? – Have they used bfa affiliated consultants and lawyers?
3. What is your financial strength? – Ask for last 3 years financial accounts. What capital have they invested and is the business profitable? Is the business financially sound?
4. Who is the main competition? – Is the market developing? How competitive is it? Does the franchise have a competitive advantage or unique selling points? What market research did they do?
5. How many franchisees are there? – Speak to as many as you can as a part of your research
6. What are your development plans? – Are there sufficient resources? How will they impact on your business?
7. How is your Head Office organised? – Management, accounting, sales support, administration. Is this a well organised and significant business?
8. Did you carry out any pilot operations? – If it’s a new franchise ask them to demonstrate its success
9. How many franchisees have failed? – What lessons have they learned? Are they prepared to discuss these openly with you?
10. How do you choose your franchisees? – What skills and attributes are they looking for and how selective are they?
11. Are you a member of the British Franchise Association? – If not why?
12. Can I take up references? – Bank reference or other reliable sources
Costs and projections
13. How much does the franchise cost in total? – What is included in the package and how much working capital will be required? Is there any additional expenditure? Is it value for money?
14. What are the ongoing charges? – Management service fee, mark up on goods or services, advertising levy, any other costs?
15. What are the key financial ratios? – Gross profit margin, typical overheads, projected net profit, stock turnover, debtor days and break-even figure. Are they realistic?
16. Can I see actual trading figures from existing franchisees? – Do these confirm that your projections are achievable?
17. Are there any financial arrangements I should know about? – Vehicle and equipment leasing, supplier terms, national accounts, requirements to replace equipment or refurbish premises
18. Is there a minimum performance requirement? – What happens if you don’t achieve it? Is it achievable?
19. Is the business seasonal? – When is the best time of the year to start trading?
20. Can I choose alternative suppliers? – Am I obliged to buy goods from your nominated suppliers? Are there minimum order levels?
21. Do you allocate exclusive territories? – How many potential customers do you have in your area? How big is your territory? Does the proposed area suit you? What restrictions are there?
22. For how long is the initial franchise licence granted? – Is it renewable? Is there a fee payable on renewal? What happens at the end of the term?
23. What restrictions will there be when I sell the business? – What penalties are there if you terminate the agreement? Are these terms acceptable?
24. What marketing programme do you have? – What are your and the franchisors obligations?
25. What training is provided? – Consider both initial and continuing training. Who pays for it? Is it classroom or field based training?
26. What support do you provide prior to the business launch? – Will you get help with site selection, lease negotiation, design, refurbishment, equipment, vehicles, staff recruitment and stock? What launch support can you expect?
27. What ongoing support do you provide? – Who will be you main point of contact? Are there regular review meetings and field visits?
28. What support is available if you run into difficulties? – Has the franchisor past experience of successfully supporting other franchisees with problems?
29. How often does the network get together? – Are there regular meetings and conferences where you can share best practices and get advice from other franchisees?
30. Can I meet your Head Office team? – What experience do they have and will they be able to support you to grow your business?