With over 1000 franchise systems in Australia choosing the right one can be a challenging process for industry newcomers. It need not be a daunting decision though, if you consider these straightforward tips from an industry expert.
Bedshed COO Gavin Culmsee told Dynamic Business buying a franchise has become an increasingly popular way of getting into business as it offers many advantages – as it gives first-time business owners access to a proven product or service, an experienced management team and ongoing support.
To alleviate the complexity of choosing the right franchise, Culmsee said Bedshed has created an easy-to-use calculator that’s designed to help prospective franchisees better evaluate their options.
Along with using the calculator, Culmsee recommends conducting extensive research on the franchise – as buying into one ultimately means locking yourself into a contract.
“You might be signing an agreement for five, 10, or 15 years long – they’re serious contracts so you really need to look at the longevity of the franchise. If a network has only been around for a couple of years I would be conscious of that,” he said.
Ask questions!
Culmsee suggests talking to other franchisees in the network to gain a thorough understanding on how much support is offered and what the return on investment is like. Ask whether they’re happy, whether they would do it all again and if the franchise is giving them the return they expected.
“I would also spend time with the franchise or marketing executives and ask them about their marketing strategies, where their business is going in the future and what support and training will be offered,” he added.
Another way to ensure you’re making the right decision is to have conversations with existing franchisees, Culmsee said. He also suggest potential franchisees should be wary if they’re only provided with one contact.
“We provide the contacts of all our franchisees to prospective franchisees… I’d be talking to a few and making sure what you’re hearing is the same across the network,” he said.
Prospective franchisees should fully consider their options when signing up to a franchise. It isn’t a get rich scheme; it is a lot of hard work. With this in mind, Culmsee has the following four recommendations for those wanting to buy a franchise:
1. First, log on to bedshed.com.au and check out the calculator tool.
2. Look for a business you have a strong interest in – you’re going to be spending a lot of time and effort on it, so you want to ensure it’s something you can remain passionate about.
3. Speak to other franchisees to get a sense of how they’ve found working with the franchise.
4. Sit down with the franchising executives and determine what their intentions are for the company.
“You do see franchise networks come and go, you want to know that the one you’re signing onto and paying money for will be here next year and the year after,” Culmsee added.
