Many people are attracted to the thought of being their own boss. They also love the idea of working in an industry they are passionate about.
However, to establish a business from scratch creates many hurdles, such as the costs involved to set up the business, develop the brand, market the business and run it efficiently. The time and energy required to do this is a limiting factor for a lot of people.
You have to consider the total amount of money you have invested and how quickly you will get a return, not to mention the risks of failure.
This is why many people look for a franchised business, where you are joining a franchise with an already established brand that has proven its products or services are in demand.
The benefits of joining a franchise business are many:
Existing reputation and brand name
Reduced or minimised risk of failure
Established business methods
Proven systems, products or services
Site or territorial selection policies
Launch assistance, training and ongoing support
Marketing programmes and support
Ongoing research and new product development
Remember that as a franchisee you will be not only signing a legally binding Franchise agreement, but also buying into a system with its own set of values and corporate vision. So when you become part of a franchise system, you will need to completely buy into its vision and not your own.
It’s highly recommended that you choose an industry you have a passion for or already have knowledge in as it helps you get established quicker and build contacts more easily.
Be proactive when looking for a franchise. Learn as much as you can about franchising, do your homework and understand the nuances in franchise business models.
We suggest as a minimum you go through this free online course:
‘Buying a Franchise’ Pre-Entry Franchise Education at the Asia-Pacific Centre for Franchising Excellence
Once you have learned more about franchising, you can begin to look for the franchise system that appeals to you.
Above all, it is critical that you get advice from people who know franchising, before you make a final decision. Do not be ruled by your heart and get carried away with the emotion of owning a particular business. Make sure that the commercial aspects make it an attractive opportunity and that you will not be bound by restrictive clauses in your legal agreements.
Talk to existing franchisees within the system of your choice. Their contact details will be provided by the franchisor as part of their disclosure process. Talk with several to be sure you don’t just speak to the one who has the best (or worst) impression of the business.
Find an advisor who knows franchising.
Franchise Systems Group act as advisors for franchisees considering an investment in a specific franchise opportunity.
Our experience enables us to become a “one-stop-shop” avoiding the need to go to several different sources for advice.
Benefit from our 30 plus years of experience helping franchisees make the right decision in investing in a franchise system.
On provision of all the documentation provided by the Franchisor we will prepare a comprehensive report to:
1. Examine the documentation from a commercial viewpoint
2. Prepare a 5-year financial projection based on information provided and our understanding of the likely income streams and operating costs for similar businesses.This will include the total cost of the franchise’s investment and their returns.
3. Provide an analysis of the Disclosure Document and Franchise Agreement and any other documentation supplied.
For further information, contact Bill Lockett on 1300 658 311