Choosing a franchise to invest your time and money into is no easy task. Naturally, you want to be sure you are making the right decision. So what should you be thinking about as you try to choose a franchise that will tick all your boxes?
As you work your way through the following considerations, use our Franchise Business Directory to easily search through the thousands of franchises in Australia and find the right one for you.
One of the biggest considerations is both the financial and non-financial resources you are able and willing to invest into the franchise. Your resources will be the major deciding factor in what kind of franchise you invest in – a business-to-business franchise or a business-to-consumer franchise.
Time and lifestyle
How much time do you have to commit to becoming a franchisee? There is a huge range of franchises in Australia and each one demands a different amount of time from you. If you are attached to a certain lifestyle and unwilling to compromise, this could mean that you are narrowing your options when it comes to choosing a franchise.
A similar sentiment goes for your money; assessing your financial resources to ensure that you are in a position to support a franchise is extremely important. Without adequate finances, your franchise simply won’t get off the ground.
Location and employees
How far are you willing to travel? It is ideal to choose a franchise that has a location near your residence. It means you are able to be a bigger part of the community – this is important, you need the local community to survive! How many employees are you willing have? Franchises can be a solo affair or can have 20+ employees and anything inbetween. Knowing your stance on location and employees will help to hone in on a franchise that will work for you.
Laws and regulations
If you already have a franchise in mind, the next step is to find out as much as you can about the Franchise Code of Conduct. It is a mandatory industry code and the Australian Competition and Consumer Commissions (ACCC) regulate it. The Franchise Code of Conduct sets out your rights, obligations and other crucial information you will need before you buy a franchise, as well as during your time as a franchisee.
It is also worth noting that the rules and regulations regarding franchises differ from state to state, so it’s worth your time to become acquainted with the regulations for your state. The Australian Government has created a helpful resource to assist you with this.
Risks and rewards
Just like buying any business, it’s important to know what you’re getting yourself into with your potential franchise. Every franchise will have it’s risks and it’s opportunities – ensure that you are as informed as you can be before entering into a contract. Making a mistake due to ignorance will put you on the back foot before you’ve even begun. The Queensland Government provides a great checklist so that you can consider whether your potential franchise has risks and opportunities that are aligned to your business ambitions.
Choosing a franchise that will work for you means knowing exactly what you want out of your venture, the resources you have available to you, the appropriate regulations and, of course, the risks and rewards involved in investing. Ensure that you are fully informed when it comes to every aspect of choosing a franchise; there are plenty of questions to ask and you shouldn’t proceed until you are comfortable with the answers given – after all, it’s your time and money, so it’s your choice.
Once you’re satisfied that you’ve made the right choice, you can move onto the next step - selling yourself to a franchisor