At HSBC we understand that if you are considering buying into a franchise, as well as a range of business services, you may need some specialist help and guidance.

With over 20 years of experience in an ever growing franchise industry, HSBC continues to show a commitment to franchising and understands that buying a franchise can be a good way of owning your own business.

We know that when you’re planning a new business, you may need more than just a business account.

To help you with your possible new business venture, HSBC offers a wide range of products, services and support.

• We have business banking managers in our branches who are in touch with the communities they serve.
• Every franchisee will be given the opportunity to meet a locally based manager who has the authority to make on-the-spot decisions about loans and other financial packages.
• We have product specialists who know about franchising and can give advice and support to the local business banking manager.  Services covered include:
 
• Invoice finance
• Insurance
• Equipment Finance
• Motor Finance
 
• We can offer tailor-made finance packages to suit your individual needs.
• Franchisees can also take advantage of our full start up service for new businesses.

Here at HSBC, we have a dedicated team of franchise specialists that are here to help you, offering an unrivalled package of help and guidance to both franchisors and their franchisees.

We believe that a good business banking relationship is based on local knowledge, direct contact and fast decisions. With over 1,500 locally based managers and a specialist franchise team, HSBC will become a vital partner where we can work with you as you develop your business.

HSBC can provide a free comprehensive franchise guide, which you can obtain by contacting us via our website:  www.hsbc.co.uk/franchise or Telephone: 0800 234 6224

When choosing a franchise, you must remember that you are entering a long term business relationship with the franchisor. So you should learn as much as possible before making that commitment.

Find out how long the franchisor has been franchising. What is the history of the business and its directors?

What is the performance of the franchises already in place? Have any of them failed and if so why?

Is there a good long term market for the franchise’s goods or services?

Look into all the costs and charges involved and how they compare to other franchises of the same type.

Find out what initial and ongoing training is offered and also how much support is given in finding and fitting out premises

However enthusiastic you are, don’t rush and be wary of franchisor pressure to sign up. Be sure that you are entering a sound business venture.

The cost of taking up a franchise will vary according to the nature of the business so It is important when purchasing a franchise that you do not over borrow. It is equally important that you are not under funded.

Be sure of your finances by putting together (with an understanding of the figures) a business plan. A business plan is a vital document to obtain finance from the bank.

For an established franchise with a proven track record most of the major banks will lend up to 70% of the start up costs or 40-50% for a newer franchise.

Franchising is not right for everyone. You must look at both the advantages and disadvantages before proceeding with your chosen franchise.

Speak to other franchisees, how are they performing, what feedback do they give?

Whilst we are happy to give general advice on how to choose a franchise and what aspects to consider, HSBC cannot provide advice or an opinion on individual franchises.