What should I look for?
There is obviously more risk associated with a pilot franchised business (which MyWaggyTails is) than a fully developed operation. Whilst the principals have proven MyWaggyTails can be a success and have extensive commercial experience, the model is unproven as a franchised model; the support mechanisms have not been tested. The risk should also be assessed financially. In the case of MyWaggyTails, the bulk of the costs and support come in the first year and there is a considerable licence discount when compared to other franchisors’ pricings and packages – as you can quickly identify for yourself. These risks are offset by the potential greater upside than later joiners, as you’ll read below.
Can you work with the franchisor (MyWaggyTails)?
Are they pragmatic? How’s the chemistry? How red-taped or ‘big corporate’ are they? Can you work with the franchisor to further develop the model and systems further, to hit key targets and to appreciate how the partnership can mutually develop?
Can you trust them?
Not just financially, and if not, don’t proceed! Can you trust them to commit and support you as an individual and your business
The potential upside
A pilot franchisee pays a lower license fee than franchisees joining the business in future years. Why? Because of the risk factors discussed above. A pilot should always be discounted and MyWaggyTails has, from an already highly competitive offering.
A franchise partner should be looking to grow their business and make a capital gain when they come to sell. If the overall business and brand do well in the future and it becomes a more attractive proposition, then your business is worth more. It’s mutually beneficial to do well. With a mature franchise, the risk has been taken out of the model; the franchisor and the support mechanisms are obviously good and are in place. The risk has diminished significantly, but subsequent franchise partners will be paying a premium on the License Fee, because of their added security.
And most importantly, no franchisor sets out to fail. Their main goal is to make their franchise network as strong, profitable and successful as possible. So the real risk is: do you go it alone (and make the same painful/expensive mistakes as everyone else) or do you buy into 40 years’ of knowledge and experience, to take that risk element out?
The choice is yours.
Tel: 020 3393 2093
Registered address: PolkaDot Consulting Limited, 3rd Floor, 86-90 Paul Street, London EC2A 4NE
MyWaggyTails is fully insured. Licensed for Home Boarding and Day-Care by South Oxfordshire Council – Licence Number: 20174
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