What Is Required for Successful Franchising?
Make a success of franchising
Did you know franchising is a big industry in Australia – directly employing over 460,000 people and generating an estimated $144 billion in turnover each year? If you’re thinking about buying into a franchise, read our helpful tips before you decide.
What is a franchise?
A franchise is an agreement that gives a person (the franchisee) the right to market a product or service using the trademark or trade name of another business (the franchisor). Some successful Australian franchise businesses include The Coffee Club, Subway, Dominos and Smilebar.
Franchise opportunities for small businesses exist across a range of industries, so if you’re keen to open a small business in your field but don’t want to go it alone then a franchise may be for you.
The franchise model
There are different types of franchise models, but the most common is the business format franchise. This is the model generally adopted by small businesses. This franchise model has established systems in place for how to run the business that are standardised across all stores. For example, this may include management systems, store layout, branding, uniforms, and how goods and services are sold.
The benefits of working with a business format franchise include being able to open a business with a brand that is already established and having support from a head office that oversees company marketing initiatives.
This differs to the experience of independent small business owners who generally have more freedom but also more responsibility.
What to look for and consider
When it comes to choosing a franchise you won’t be short for options with some 1180 franchise systems available in Australia. Here are some key considerations for reviewing franchises include:
- Your budget
- Your skills and interests – will you enjoy working in the business?
- Does the franchise model complement your lifestyle and obligations?
- The demand in the market for the product or service
- The state of the market, its longevity and its potential to grow. For example, a printing franchise may not sustain long-term growth if it doesn’t offer other related services such as design or web development.
- How competitive or saturated is the market for that product or service?
- The history, reputation and financial success of the franchise.
- How much training and support is offered.
How to become a successful franchisee
Once you’ve chosen a franchise whose business philosophy aligns with your own, embrace the franchisee experience. Ask questions and connect with the support networks offered by your franchisor. Use all the training opportunities made available to you. Set goals and keep learning. Hire well and create a workplace culture that will attract and retain good staff. Connect with fellow franchisees so you have a support network of like-minded business owners who you can share experiences and get advice from.
Work hard but remember to give yourself some time out so you stay fresh and focused. The most successful franchisor/franchisee relationships are those that centre on shared goals, communication and mutual understanding.
Once you start your franchise, Franchise Central can help you maintain and grow upon your success – just like we have helped so many other Franchisees and Franchisors over our 25 year history as Australia’s leading franchise business development and expansion specialists.
Common feedback we receive…
“Franchise Central understands my business, and they are very easy to deal with. I know that if I have a problem, they will work with me to solve it.”
With a proven track record of success since 1991, Franchise Central aims to provide solutions tailored to the specific needs of a business/franchise – we understand speed is vital when it comes to small business cash flow and we aim to move as fast as our customers do by looking at their business, not their assets.
If you are looking to grow your franchise business or start a second one
If you have questions, Franchise Central has answers!
CLICK HERE to contact Franchise Central or call us on 1300 558 278.