YOU’RE FIRED! expertise to present your case effectively to your
If you go for the easy route, you may end up bank manager. You will also have gained personally
working for a franchise you hate, just for the sake from the knowledge, and will be less prone to fall
of scrimping and saving. Without a common ground, into any potential financial bear traps.
both you and the franchisor will not see eye to eye.
And on that note, without a shadow of a doubt: TASK FIVE
You’re fired! Congratulations, you’ve made it to the final stage
of this task. Without passing any of the above, a
THAT’S WHAT I’M TALKIN’ ABOUT! venture into franchising would have been doomed.
Work out your strengths and interests and relate But there’s still your case to present to the bank
them to the available franchises. That way, you’ll like manager. It’s up to you which bank you choose
your work and also stand to make the money in a to go for, although it’s worth researching the best
short space of time. deals out there. Believe it or not, banks know that
investors in established franchises are worth the
TASK FOUR lending risk, and will mostly offer to lend up to 70
Task four is really helping yourself. You need to get per cent of the complete project cost.
information about the finance you are about to get A great deal of high street banks include a
involved with. There are a number of ways in dedicated franchise department, which could be
which you can do to your advantage. If the bank has dealt with a
this. Read up on franchise organisation in the past, then it may
information offer a pre-arranged financial package. Because
from leaflets, the system is already in place, that means that
books and the process will be considerably quicker, a
websites. considerable benefit.
For Security might have to cover ‘liable capital’ which
example, means the difference in value between your
the bfa website assets and the claims held against them. Most
includes useful franchisees represent this with free equity in their
glossaries on business home – although shares, collateral deposits or
and legal terms. guarantees may also be accepted.
Also talk to both
franchisors and franchisees. YOU’RE FIRED!
They can help you with Depends on the bank. If you hit a brick wall with
financial advice on all aspects your application, try another bank who may be
of the franchise, including cashflow more sympathetic. And if that fails, hope for
forecasts, profit projections and previous a lottery win. Until then, sorry my friend, but
trading accounts. you’re fired.
YOU’RE FIRED! THAT’S WHAT I’M TALKIN’ ABOUT!
This task is really in your own interests. There’s Also depends on the bank. If they say yes, your
no need to feel that you have to go it alone in franchising days are about to start.
this process. The franchisors and franchisees can
advise you on elements of finance that you may So here’s the end of the contest. With the sufficient
not understand. And there’s no excuse for not funds to progress, your franchise will change your
doing research. It’s like performing an Elvis song career. It’s still worth noting that the immediate
at a karaoke night without having heard any of the profit won’t happen – you’ll build this up over time
King’s back catalogue in your entire life. Clueless? with hard work, so regard the experience as one
Yes. Fired? Yes. long investment, as your finances will hopefully
rocket into the stratosphere.
THAT’S WHAT I’M TALKIN’ ABOUT! Oh, and turn up for your first day of work as
With research completed, you will now have the franchisee. Or I’ll personally fire you.
15
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