Franchising

People often think that buying a franchise is the best way to start their own business. In return for an often excessive franchise fee they will get a 'turnkey' business in a box with a brand name and all standard documentation from the word go. This may be the case but before looking at a mobile phone Franchise you must also think about the all the implications of agreeing to follow someone else's business model. Some pointers to consider are:

1. Franchise Fee - you will have to pay an upfront Franchise Fee. The Franchise Fee will be anything from tens to hundreds of thousands and non-refundable (usually around £140,000 for a mobile phone network franchise such as an Orange Franchise or O2 Franchise). Even if you later realize that the business is not for you the Franchiser is very unlikely to refund your fee, or even release you from the agreement.

2. Franchise Agreement - When purchasing a Franchise you, the Franchisee, will be obliged to sign a Franchise Agreement with the Franchiser. Notoriously these are weighed in favor of the Franchiser, who created the Franchise Agreement, or paid their solicitors to produce it on their behalf.

3. Legal Minefield - Franchise Agreements are governed by Franchise Law, which is different to most other forms of law! A legal minefield.

4. Legal Advice Required - I am no legal expert but I would recommend that you have a legal adviser consider any Franchise Agreement that you consider entering into before you sign it. Or you could be signing away any potential future earnings without even realizing it. So build in the cost of asking a legal adviser to review it and explain what you will be bound to, this can cost anything from £500.

5. Ongoing Payments to Franchiser - In return for using the Franchisers brand name you will be obliged to pay them a percentage of your earnings! They will profit from your labor.

6. Strict and Costly Operating Guidelines - To continue to operate your Franchise you will be obliged to meet the Franchisers, often strict, operating protocols. This can include having to purchase specific items of marketing material at a cost determined by the Franchiser.

7. No Independence - You will have to show the Franchiser complete brand loyalty. Signing up to the Franchise with one mobile phone network will prohibit you from dealing with any of the other mobile phone networks. This will limit both your earning potential and your offer to your customer. Also you will not be able to market yourself as independent!

8. Limits to Stock Procurement and Sales Offer - You will be limited to their choice of accessories and applications, again limiting your earning potential.

9. Requirement to Hold Stock - For a retail mobile phone franchise you will be obliged to hold in a lot of stock at an investment of thousands of pounds. This will include spending money on stock which, in this market place, quickly becomes obsolete and worthless. You could end up watching your investment go down the drain.

10. Strict Premises Acquisition Requirements - If your chosen Franchise requires you to operate from premises then you will have to adhere to the Franchisers location requirements. This could involve you having to sign up to an expensive high street retail premises lease.

In my opinion if you are considering starting a mobile phone francise, such as an Orange Franchise or O2 Franchise, you would be better off starting your own mobile phone dealership as I did. Start your own home based mobile phone business offering all main 4 network solutions to your business customers. This is a far more lucrative business opportunity. The advantages? If you buy my guide and follow my systems:-

o you will be able to manage your own finances;
o you will be able to keep the profit that you make;
o you will be able to run your own business;
o you will be able to manage your own destiny;
o you will be able to offer all mobile networks;
o you will be able to offer your customers completely independent advice;
o you will be able to avoid having to purchase and hold any stock;
o you will be able to buy stock only when the customer has agreed to buy it from you;
o you will be able to choose where to run your business from, even your own home;
o you will be able to choose the hours you work;
o you will be able to choose when or if you employ staff;
o you will be able to avoid making costly mistakes.