| The starting point, we believe, for anyone trying to get | | | | are probably also frustrated by having limited capital to |
| their head around how and why franchising works, is | | | | grow into more places across Australia, and you are |
| to read everything you can get your hands on before | | | | sure type of business, given the opportunity to expand |
| parting with your life savings! Do not believe what | | | | into these perceived new markets, would do very well. |
| franchisor's advertisements say. Try to be as | | | | That's when the idea of franchising enters the scene |
| unemotional as possible as to what you really want | | | | as maybe; just maybe it could provide the growth |
| from a franchise relationship. Like most things in life | | | | answers of both finding and then just as importantly |
| that look simple on the surface, franchising is a | | | | keeping good people, who will invest their hard earned |
| complex Pandora's Box, as often it is not the obvious | | | | savings, up front to follow your proven marketing/sales |
| stuff, you really need to understand. | | | | way of doing things. |
| Let's start with, why do businesses choose to | | | | Your biggest problem as a potential franchisee, and |
| franchise? The frank answer is they want your | | | | frankly it is the same problem for a new franchisor, is |
| money as their franchisee to grow their sales/service | | | | making sure both parties understand exactly what this |
| distribution system. What type of business can be | | | | unique commercial relationship will be! We call |
| franchised? Just about anything. So what type of | | | | franchising "The culture of caring". Why? Because the |
| business makes the best franchise system? Well, | | | | franchisor needs to care for the financial wellbeing of |
| that's not easy, but let's start with the reality that a | | | | each and every franchisee they carefully select to be |
| franchisor is a self appointed leader, and they want | | | | part of their franchise family. |
| you as a team player and dedicated follower to join | | | | So let us start the process of your understanding of |
| their marketing system. Yes, you have to commit your | | | | franchising, at the bathroom mirror, for some serious |
| hard earnt dollars to join that franchise system and | | | | navel gazing. If you are considering buying a franchise, |
| hopefully in doing so you have bouht yourself a good | | | | here are some questions for you: |
| insurance policy! As your start down the part as a | | | | Are you a team player? |
| small business person, which will not end up in | | | | Are you passionate about the type of work you |
| disaster? Yes it is true, technically the franchisor has a | | | | would like to do? |
| strong vested interest in your long term success as | | | | Are you in a position emotionally and financially to |
| one of their franchisees, so you will be safe? | | | | make a decision within the next couple of months? |
| Most people buying a franchise have not been in | | | | How much do you expect to earn in the next year, the |
| business before, however they have dreamt about | | | | year after that etc? |
| doing so many times and are at a very personal | | | | What type of things are you lousy at? |
| crossroad in their lives, looking for a way to do so, that | | | | What exactly do you expect the franchisor to do for |
| will minimise their risk. Let's look at this franchising | | | | you? |
| decision from the franchisor's point of view, first up. | | | | On a scale of ten, how much of a risk taker are you? |
| You are the owner of a successful business that is | | | | Which job from your past, did you like doing the most? |
| sick of employing people, putting up with fickle | | | | Do you like the idea of selling? |
| interstate agents or perhaps given up trying to find | | | | Where do you see yourself in 10 years time? |
| good distributors or commissioned sales people. You | | | | |