Surely more people would start a business if they were aware of part-time franchise opportunities? You may not have considered a franchise for fear of the scale of the investment involved or the time commitment required. But the truth is there are franchises ideally suited to those only looking for a part time commitment. Alternatively, a franchise may not have appeared on your radar at all.
What Is A Franchise?
So let’s take three steps back and consider what a part time franchise is. Under the terms of a franchise, the owner of the franchise (known as a franchisor) sells the rights to their business model and branding to a third party. Household name franchises include McDonalds, Cash Converters and Costa Coffee. While these require a significant investment in terms of time and money, it’s perfectly feasible to start small if you pick the right franchise.
The culture and personality of franchises varies hugely, but are some are geared to people who want to work part time or who don’t have to work full time. The last thing you need iss a franchisor breathing down your neck piling the pressure on. Thankfully, some franchisors, make a franchise a realistic opportunity for those with limited time or who want to run a business in a flexible way. Franchisors have told us they accept franchisees who can’t or don’t want to give a full time commitment.
Many of these franchises are snapped up by working mums or those returning to work. It’s quite possible if someone has enjoyed a career break for whatever reason, they don’t want to go back to their old job. A fresh opportunity might mean a franchise.
Franchises vary in how fees are charged. These can include:
- Upfront payment for the franchise
- A charge relating to the amount of business turnover
- Charges for marketing contribution
- Training and stock fees
There are advantages and disadvantages of buying and running a franchise. You will never entirely be your own boss, for example. However, the support provided by the best franchisors can more than make up for the negatives.
Before committing to a franchise it’s important to undertake legal and reputational audits of your selected franchise. We’ll come onto this later.
Understanding the charging structure is essential. Particularly for those starting a part time business and going into business for the first time. You should also be crystal clear on the amount of ongoing support and the turnover and profit requirements. You’ll want to know how much franchisees make on average.
Avoid new franchises without a track record in the UK. Business owners can be tempted to franchise a business that doesn’t have a proven formula in the UK or only has minimal goodwill. Any business requires graft, but a part time franchise should also be good value for money. You want to buy something that is proven to generate an income in the UK.
Part Time Franchises Advantages and Opportunities
A part time franchise might only be a stepping stone but can be very lucrative if you choose the right franchise for part time working. It is entirely possible to start a business from scratch. But it’s much less of a known quantity than a franchise.
Proven Business Model
A franchise should have a proven business model. Otherwise what’s the point? A franchise that’s been established for at least 5 years is ideal. The investment you make is partly paying for a formula that leads to business success. You will also want to speak to current franchisees to establish the franchise still has legs.
Low Cost
Most people think franchises always cost tens of thousands of pounds if not hundreds of thousands. This isn’t always the case – especially if you’re looking for a part time opportunity. And here’s something the big franchises don’t want you to know. Low cost franchises often offer better returns. If you look hard enough you’ll find many franchises priced at less than £10k.
Known Investment/ Returns
When you’re new to business it’s virtually impossible to arrive at a fully-costed model ) of your business idea. Compare that with a franchise where through years of experience they will know how much upfront capital you need to invest. They will also be able to advise you on the amount of working capital needed. More than anything else, under estimating how much working capital is required can kill a business more quickly than anything else.
Established Brand
It takes time and effort to build a brand, and a significant know-how. New business start-ups simply don’t have a brand even although possible to spend a lot of money on marketing. Being able to work under a trusted brand is a huge advantage over all the one-person businesses starting from scratch.
A brand inspires confidence and trust but also sets expectations. You should remember this.
Training
All franchisors provide training. This might be an extra cost over and above the initial investment. That’s not a bad thing per se. The training provided by the franchisor will be geared to your franchise. Had you been starting off on your own bat you’d have to trial lots of separate courses and none of the training would have been geared exactly to your business.
Mentoring And Support
Ongoing operating support is a feature of all franchises, but it’s better to find a franchise that will offer ongoing support geared to your needs. All will support the launch of a new business, but ongoing support in areas such as business development can be critical. Some franchisors may prefer people new to business (no bad habits) and these are likely to offer more one to one support.
Marketing
Even for part time franchises, you should be able to take advantage of national marketing. Usually there is a separate fee to cover this. Typically its paid monthly. The purpose of national marketing might be to support overall branding. However it may also help generate leads (see below).
Lead Generation
It’s difficult to generate quality leads. If the franchisor pays for national marketing, it may generate local leads which are then given to you. These will be leads which will have given their permission to be contacted. This kind of activity is very valuable if you have no previous experience.
Business Development Know How
Over many years, a franchisor will have learned through trial and error the most productive forms of business development for the business. Individuals new to business tend to have a fear of business development so this is an area you definitely want to enquire about. The alternative? Wasting time on non-productive activities or making progress by trial and error. Exactly what the franchisor did years ago. Learn from their experience.
Risk Reduction
Risk aversion inhibits people from starting their own business. This is especially true when they feel they have to give up their job to do so. Giving up a comfortable income is hard. It can be better to test the waters on a part time basis.
A franchise, in principal, removes much of this risk because you are working with a proven concept. It’s not entirely risk free but it does omit many of the unknowns. A part time franchise can’t be combined with a part time job in a non-related field.
Realistic Targets For Part Timers
The adage, work as little or as much as you want to, is rare among franchisors, but we know from work we have done with franchisors, it does exist. Don’t forget a franchise audit is a two way process. If you’re candid about your goals, then it’s likely you’ll make further progress with franchisors preferring to attract part timers or those who have a flexible approach to working hours.
Sell Up When You Want to Quit
Always go into any business with an exit plan. In the cases of franchises, the question will be whether there is a market for re-sales. If there is a history of not many available, this probably means demand is good and franchises sell quickly. Lots of re-sale franchises hanging around the market might be a sign demand isn’t good.