Assessing Franchise Opportunities at Exhibitions

A franchise exhibition is an invaluable way of gaining access to hundreds of franchise opportunities under one roof.

Whether you’ve decided on a sector or not – or even if you’re still uncertain that franchising is for you – a franchise exhibition can help crystallise your decision-making process. 

These exhibitions can house hundreds of franchisors showcasing potential franchise opportunities.

According to Insight: an Industry Review of Franchising in the UK, a new report published by Franchise Development Services, 21% of franchise owners have cited exhibitions as their main source of information on brands and trade shows. The franchise owners surveyed placed exhibitions as more effective than franchise magazines in attracting leads.

If you’re uncertain of your sector, you should consider setting aside a whole day to talk to as many franchisors as possible. If your heart is set on an industry, it might not take too long to navigate your way around franchisors in that sector.

Make sure you look at the exhibition catalogue and pick your favourites and, if possible, approach the event with a strategy. You'll leave the event satisfied if you have gained an accurate picture of the range of opportunities available.

Exhibitors invest time and money in catching interest, but it should take more than a flashy sales pitch to commit you to a particular brand.

Exhibition stand owners are there to pitch at you to merit your investment. It’s easy to get caught up in their enthusiasm.

The exhibition environment can be intimidating – so many franchisors vying for your attention with compelling statistics and promises of a better lifestyle - so focus on identifying the most promising opportunities and seek out further information after the exhibition.

Quizzing franchisors

Meetings franchisors can be as daunting as a job interview. Both parties will be assessing one another as potential partners in a franchise relationship, but at this stage there is no formal assessment of you as a candidate, so relax.

To gain the best possible insight into the management of potential franchises, come prepared with a raft of questions. Some questions you will put to all franchisors, for example about their financial track record, the number of franchise owners in their network and the long-term viability of the product or service on offer.

Others you will tailor to a specific brand. Say, for instance, you’ve got a convenience store franchise on your shortlist – you might ask them how they deal with the proliferation of Tesco Metros on the British high street.

Make sure you also understand the total size of the franchise investment required, including any hidden fees.

The franchisors will evaluate you by asking open-ended questions to ascertain whether you are a serious contender. Just like you, exhibitors will not waste time on those providing vague answers.

They may ask you how much finance and security, such as property, you have, and why you are interested in the franchise opportunity.

Make sure that exhibitors are aware that your intentions are sincere. Registering with them without having a face-to-face discussion will be a waste of your time. Make it clear that you’re interested and you will receive the attention that you deserve.

Seminars

Most franchise exhibitions host seminars designed to educate visitors about various aspects of franchising.  Subjects may include introductions to franchising and ‘How To’ topics. We recommend that you balance how helpful these seminars may be with how much they eat into your time navigating the exhibition stands.

Don’t sign up now, take advice

Franchisors justify the cost of exhibiting according to the volume interest registered in their opportunity. The vast majority of franchisors try to convert leads into actual investment later on rather than signing franchise owners up at the exhibition itself; walk away from any franchisor who tries you to sign documents immediately.

Always exercise caution at the exhibition and take professional advice before investing in any franchise opportunity. Such advice can identify areas of negotiation and dissect seemingly ‘perfect’ opportunities.
Investing in a franchise is likely to cost thousands of pounds. So consulting a solicitor, accountant and/or franchise consultant will not only help with finding the right franchisor, but also help to protect your investment.

Finally, evaluate all options

Franchise exhibitions should be valuable and enjoyable. There’s no other way of gaining direct access to the people running a range of franchises in a short space of time.

As one part of your research process, which also includes taking professional advice, reading promotional literature and browsing the web for news and forum topics relating to the brand, visiting a franchise exhibition will take you one step closer to finding your perfect franchise opportunity.

You can find out about franchise events at the British Franchise Association website.

Once you've chosen a franchise, you need to consider Raising the Finance.