Buying a business can be a long and daunting experience for not only the first time buyers but our seasoned entrepreneurs. More and more opportunities are becoming available within franchised networks. In Australia there is a franchise operating in almost every category with varying levels of commitment, experience and cost.
Buying a franchise can be a viable alternative to starting your own business. A franchised business offers a simple way to go into business for the first time.
Franchised businesses offer you a proven recipe and a ‘ready to go’ business concept that has been adapted to perform to best practice principles. You are offered training, ongoing support and marketing initiatives to help make your business a success.
All franchised businesses are different and each have their own rules, regulations and pre requisites for incoming business owners. They operate under a Franchise Agreement that is signed by both parties. It is important that you seek advice and understand the agreement before signing, as it will be your responsibility to adhere to all aspects and to know what to expect from your franchisor.
While franchised businesses offer a proven business model it is no guarantee for success. The same fundamental business operations will apply and it will be your responsibility to ensure that you are managing the business, staff, stock, cash flow and providing your customers with quality service and products.
There are no guarantees for success in small business, while franchising is seen as the most successful form of small business operations it is still an investment and a venture that is open to the same risks inherent to other businesses. It is important that you do your research and understand the risks involved.
Some points to consider:
- A Franchised business will offer you the independence of small business ownership
- You will have the support and benefits of a big business network
- Franchise models offer training and ongoing support which means that you don’t necessarily need prior experience or skills in the field that you are buying
- Franchises have a higher rate of success than start-up businesses
- There are a number of franchise group who are considered preferred clients of major banks which means that you may find it easier to secure finance. It may cost less to buy a franchise than start your own business of the same type as you can often borrow a percentage against the business
- Franchises often have an established reputation and image and are often supported by national marketing and advertising campaign
If the idea of owning your own franchised business excites you then it is time to start shopping! As much as the franchisor will want to interview you, it is your opportunity to interview them to make sure that you find exactly what you are looking for!