Published on 02/12/2016 by Punchmedia

Be Sure to Check Your Franchise Facts

As oil giant Caltex faces a potential class action over allegations of exploiting its workers and of course the recent 7-Eleven staff debacle we thought it was the ideal time to take another look at franchises and what you must look at before signing the papers. Are you looking to purchase a franchise for sale? Before investing in a franchise business, there are some key points that you need to ask both the business and yourself. Owning and running a franchise can be a very rewarding experience if you find the right one for you.

Is The Business Model of Sufficient Strength?

Sound Track Record

There is no set amount of time that needs to have passed before you invest in a franchise. However, it is crucial to find a balance between a franchise that has been around for a certain period of time and has a track record of success, and one with products and services that are in increasingly great demand.

Changes Between Countries

Yes, consistency is importance however, if the franchise is originally from a country oversees, often its business strategies or marketing collateral will not bode as well with Australian consumers and the general public. Even simple things such as spelling, grammar, and slang words must be altered so that they can be understood and accepted by the country that the franchise is coming to.

2. Do They Have a Great Marketing and Brand Strategy?

Even if the franchise is still an emerging brand, they must have a clear understanding of where they are placed, and where they want to go in the industry. A sound marketing strategy must be in place prior to the business growing otherwise franchisees will be the first to fail. A clear strategy to increase brand awareness, recognition, and usage should be set in place, and this does not necessarily fall into the task-set of emerging franchisees, rather, it should be something that the business has developed prior to selling franchises. You will need to have a clear understanding of both the broader marketing strategy, as well as how you plan to promote yourself in the local community. You certainly want to ensure that your franchiser is an intelligent businessperson with a clear understanding of where the business has potential to grow. You want to ensure they have done their adequate research and that they understand the market in which they exist.

3. Will There Be Adequate Support and Training Provided?

For many, it is the preexisting support network that comes with buying into a franchise that is appealing. A great franchise (and one that you want to buy into) will consider both training and support as crucial elements to the ongoing success of the business. They should therefore offer induction and ongoing training, as well as ongoing support. Keep in mind, however, that often businesses are very much stuck in their old ways. A refresh in terms of both business strategy and training may be necessary and a new franchisee with a fresh approach could be the ideal person to inject these ideas into the broader business.

4. Happy Franchisor and Happy Franchisees

Often, it may seem as business owners are doing things that are not necessarily beneficial to franchisees, however, you need to have that level of trust and respect for the franchisor that what they are doing will be of benefit in the long run. One way of gaining an understanding of the internal workings of a business prior to purchasing your franchise is discussing day-to-day life and general feelings of how the franchise is working with other franchisees. In fact, this is something that the business owner should actively encourage in order to have franchisees that are motivated and are aware of expectations. It is crucial that you are aware of, and can respond positively to all of the above points prior to purchasing a business in order to become a long-lasting and effective franchise owner.

punchmedia

Curtis is a leading expert in the business-for-sale industry, serving as a senior content creator at anybusiness.com.au.

With a career spanning over fifteen years, Curtis has accumulated extensive knowledge in the domain of business sales, acquisitions, and valuations. His deep understanding of market dynamics and his ability to translate complex industry jargon into accessible insights make him a trusted resource for entrepreneurs and business owners looking to buy or sell businesses.

Author profile

Related articles

Mature workers made redundant seeking franchise opportunities

02/02/2014 by gavinLower

Mature workers who’ve been made redundant are investigating opportunities to work for themselves through franchises, a leading Australian franchise business says. “We’re seeing more and more people in the situation where they are made redundant and want some certainty with what they want to do in the future,” says John Stanton, Australasian franchise recruitment manager at mobile coffee business Cafe2U. He told StartupSma...