Franchise Basics


Owning a franchise can be a great alternative to starting your own unique venture. Also, if you’re looking to expand your existing business, a well managed franchising agreement can be a great way to get into new markets.

A Franchise allows one business to operate the trading name of another businesses established brand and sell it’s product and/or services.

But, like very business decision, a franchise must be considered carefully and the right process must be followed. It is important to note that franchising is regulated by the Franchising code of conduct.

Buying a Franchise

By buying a franchise you’ll have the right to run an already established business as your own, selling it’s products and services for a particular period of time. Before you make the purchase though, it’s important to consider all the potential issues just like you would any other business, which can include what happens is the Franchisor fails.

To improve your chances of success, the Australia government have provided a guide:  Starting your business checklist.

When you’re entered into a franchise agreement, you must know that it’s a legal document and you have legally committed yourself to run the business according to the requirements set out by the franchisor. All the operation manuals and franchise manuals must be adhered too, plus you’ll be bound by the Franchising code of conduct.

Franchising your business

If you have a business that’s already running well and you’re looking to expand, it can be worthwhile thinking about franchising. If it’s done properly it can open up a whole raft of new markets that you currently done have access too. Before you do that, you want to make sure your franchise model is properly constructed.

A great way to start is to actually run your own franchise model before you go to sell it! That way you can prove the concept, work out whether it will work or not and establish the demand for the packaged offering.

It helps you determine how sound your processes are and whether they’ll be repeatable or not. It needs to be easily repeated in each new franchise so you best test it thoroughly. Whilst there is no strict process for approval or a franchise process, you are subject to ACCC laws and the legal process for getting a contract signed can be tenuous, so make sure you’ve got everything tested as well as possible before doing it.

There are tax considerations you need to be aware of when it comes to franchising your own business too.

Some Additional Resources

It’s really important to have as much information as possible at hand to give yourself the best opportunity for success in your franchise.

To help you improve your business knowledge, the Asia-Pacific Centre for Franchising Excellence has created the Franchise and Small Business Survival eClass series.

The series offers four free online videos:

  • Contractual understanding – Learn what a contract is and what you should look out for before signing one.
  • Expectations – Get an idea of what expectations you’ll need to manage as a franchisee or business owner.
  • Debt – Understand what debt is and how much debt is enough.
  • Partnerships – Get tips on what to consider when entering a partnership and how to keep the relationship healthy

You can find the course here: Franchise and Small Business Survival eClass series

If you’re looking for the perfect franchise business for you and your family, look no further than JAN-PRO.

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Cleaning services provided by independently owned and operated JAN-PRO cleaning franchisees. To learn more about the JAN-PRO organisation & business structure, click here.

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