Profit from the answers to your dream future

Franchising: ask the right questions and you should be on the road to success in your venture, advises Michael Весket.

Franchise operators seem to have a simple approach when it comes to recruiting - "Don't worry about what sort of work we're doing, just roll up your sleeves and gel down to it." Potential franchisees glancing through magazine advertisements could struggle to find out what line of business they are chasing because the wording is so vague.

It all seems to be a seller's market. Certainly the sector's profile - there are almost 680 franchise systems, operating in the UK - suggests business is booming. Figures released in the run-up to this week's Franchise Exhibition at the Wembley exhibition and conference centre show the industry is producing a turnover of £9 ½ billion a year and providing more than 326.000 jobs.

The initial start-up cost is now averaging £59,200 and the typical franchise is generating a turnover of almost £300,000 a year while 91% of franchises say they are making money.

It is impressive, but most of the large and reputable franchise operations complain they arc suffering from a shortage of "suitable applicants". More than 40% of franchisors say the biggest barrier to growth is a lack of franchisees they feel will make the grade.

1. It is simple to buy a franchise operation.

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2. Advertisements for franchises don't always make it clear what kind of business is involved.

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3. Franchising appears to be very successful in the UK.

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4. Each franchise operation makes about £9 ½ billion a year.

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5. The exhibition at Wembley provided around 326.000 jobs.

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6. You would need just under £60,000 to start a franchise operation.

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7. Franchises could grow faster if more money was invested in operations.

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