After the 2020 COVID-19 pandemic, there has been a significant surge of resignations across enterprises.
After the 2020 COVID-19 pandemic, there has been a significant surge of resignations across enterprises. Many employees put down the papers because the pay cuts and furloughs during the pandemic lockdown hit them with a realisation. They felt the need to do something on their own instead of depending on the security of a 9-5 job. While the idea of entrepreneurship is commendable, starting a business is easier said than done. But if you are contemplating going the entrepreneur-way, leaving your job, buying a franchise in Australia is a lucrative option with fewer risks attached.
Essential Steps to Buying a Franchise in Australia
To ease your woes, we have compiled a few easy steps that will help you understand the process and the legalities attached to buying a franchise for sale in Sydney, Australia.
1. Are you cut out to run a franchise?
As an aspiring franchisee, that’s the first thing you should consider. Find answers to the following from within;
· Am I sure about starting my business?
· Do I possess the skills to walk that road?
· Am I ready to work hard and take up any responsibility for the success of my franchise?
· Can I commit to running the franchise?
· Will my family and acquaintances support my decision?
If your answers are affirmative to all these questions, you can move on with your plan of buying a franchise.
2. Can you Arrange the Capital?
The next thing that you need to think of is the capital to buy franchises for sale. Although it is a franchise, which is not as expensive as starting a business, you still need money to buy the rights of the brand. Luckily, franchisees can get the loan on simpler terms if the franchisor is a well-known brand. Some franchisors offer lucrative loan options to franchisees. Apart from the initial investment, you also need to think about the location, royalty fees, and the overall expenses attached to running a franchise before applying.
3. Which Franchise to Choose?
There are so many brands on the market, well-known and new, but with potential, selling excellent franchise deals. First, we would recommend you choose a category like retail, personal service, commercial service, food and beverage, fitness, etc. Then check out the top franchises in demand and within your budget. You can refer to a franchise magazine to get the latest news on what’s trending in the industry.
4. Did you get your due diligence and legalities in order?
Due diligence is an essential step in buying a franchise. Make sure that you ask the franchisor about the following:
· Financial track record
· The success rate of the franchise and the present franchisees
· Annual turnover
· Training and support offered by the franchisor
· Number of active franchises
· Any franchises that failed in the past
· Any reasons why they reject an applicant
· Franchise contract renewal terms and conditions
When buying a franchise, you must have a legal counsel by your side, handling the legal agreements. You will get four documents from the franchisor;
· Disclosure document
· The copy of the franchising code
· Receipt document (you will have to sign that)
· Franchise document
Once the due diligence is done and your lawyer has gone through the contract giving you a green signal, you can finalise the agreement to start your journey as a franchisee.
We hope that this blog will help aspiring franchisees in understanding the processes. For more information and the latest news about the franchise industry, feel free to subscribe to https://www.businessfranchiseaustralia.com.au/, the leading franchise directory in Sydney and across Australia.