Choosing the right franchise
Choosing the right franchise is about matching your personality, skills, experience and motivation to a particular franchise. It's about getting a good fit between you and the business.
Before choosing a franchise, you need to ask yourself the following questions:
- Do I have the ability, commitment and personality to run my own business?
- What are my strengths and weaknesses?
- What type of business appeals to me?
- Can I work within the limits of a franchise?
- Am I prepared to go into debt to buy a franchise?
- Am I prepared to work long hours and make sacrifices?
- Do I have the support of my family?
The Franchise Council of Australia has created a free brochure about what you need to know before becoming a franchisee.
Under the franchising code of conduct, the franchisee is entitled to receive essential information from the franchisor.
Types of franchises
If you feel you are ready to commit to a franchise business, you need to find a franchise that suits you. According to the Franchise Council of Australia, there are 2 main franchise types:
- a business format franchise in which the whole business concept is licensed and standardised, including the name, appearance and method of carrying on the business (e.g. fast food outlet)
- a product and trade name franchise in which the franchisee is:
- licensed to sell products manufactured by the franchisor (e.g. new car dealership)
- licensed to manufacture and sell the franchisor's products (e.g. soft drink bottling).
The Franchise Business Directory lists more than 1200 franchises for sale in Australia and is a good starting point for researching potential franchises.
Searching the directory will give you basic information about different franchise agreements, including operating territory, investment required, training and support provided, and the term of agreement. You can also use the directory to find professional advisers for help.
The Franchising and Business Opportunities Expo is a good place to look at different franchise opportunities, talk to franchisors and attend free seminars.
- Read the free franchise resources from FranchiseED including: