Posted on: 04/12/2009 

Newly redundant people are swelling the ranks of the UK's franchisees, an agreeably disparate bunch of strivers with total annual sales of more than £11bn. For example, for an investment of about £12,000 you can take on a Dial-A-Dog-Wash franchise. It sounds like an ideal business for someone who does not mind getting very wet. And possibly bitten.

There is something of a his 'n' hers thing going on in franchising. "Man in a van" franchises offer true boy's toys, shiny vehicles packed with tools for changing autoglass or smoothing dents. Manicure businesses or slimming clubs are the yin to that yang.

Out-of-work execs can get in on the act. Management or sales coaching franchises typically cost up to £60,000. The first challenge for the would-be guru is to answer the question troubling prospective clients: "If you're so smart, how come you got fired?" The golden arches remain the golden standard in franchising. Sneer not. Flipping burgers may be a dead-end job. Managing burger flippers is not. McDonald's franchises can reputedly change hands for millions. Domino's Subway franchises are well-regarded too. A franchisee with several outlets can make a mint.

But disaster will engulf some aspirant franchisees who swap their redundancy payout for franchise manuals, training and a supposedly national brand. "All that unscrupulous franchisors require from a franchisee is a pulse and a chequebook," warns Anna Rippa of the whichfranchise.com website.

Blue-haired everywoman Marge Simpson epitomised the problem when she was sweet-talked into buying a franchise in an episode of The Simpsons . Mobile pretzel retailing proved tougher than she had imagined. There was an ugly battle for market share with rival housewives peddling falafels.

Recession has expanded the supply of would-be franchisees. But the supply of viable franchises has, if anything, diminished. The property crash has taken a heavy toll of lettings and estate agency networks.

Reputable franchisors do not just want a down payment and a percentage of monthly profits from franchisees. They want acumen, people skills and a capacity for hard work. They discourage lily-livered, would-be partners from the start.

Notebook filled in a Cosmo -style questionnaire on one franchising website. This aimed to gauge the assertiveness, energy and enterprise of wannabe franchisees. The assessment that came back was: "Your overall qualities and attitudes simply do not match those of successful franchisees." So much for a new career in the pooch-pampering industry. Better stick to journalism.