Australia’s franchise industry is one of the largest and most thriving globally, contributing significantly to the country’s GDP. As of 2021, there are 1100 franchisors.
Australia’s franchise industry is one of the largest and most thriving globally, contributing significantly to the country’s GDP. As of 2021, there are 1100 franchisors and 65000 franchises, some brands as old as 1970. The franchise industry started flourishing during that period, reaching its present-day prominence. Going into the franchise business will have ample prospects for an aspiring entrepreneur. If you are thinking of buying a franchise in Australia, this article will help you understand the process in a few simple steps.
Steps to Owning a Franchise
Although buying a franchise is an extensive process, we will try to simplify a few essential steps.
Unless you are sure about the brand you want to invest in, thorough research is necessary. Firstly, you must decide on the industry. Follow it up by studying the profit-making brands with franchises. A franchise magazine can help you with that. There is a high chance you will come up with multiple names because initially, all brands seem like lucrative prospects. Well, there is no harm in it. Make a list of the ones you find best suited for your entrepreneurial ambitions.
2. Initial Inquiry
In this phase, you will contact franchises directly, via mail or by calling as per their contact information. The franchisor then reaches out to you and assesses your application for buying a franchise unit. They will see if you are eligible. Depending on the company and the respective policies for owning a franchise, they will ask you to furnish a few documents for the assessment.
3. Legal Formalities
Once the initial inquiry is over, there are a bunch of legalities to get over with. As per rules, the franchisee will get a franchise model disclosure agreement with all details about the franchise, including initial investment, royalty fees, renewal terms, company policies, details about training and support, etc. There will be other financial and legal details about the franchisor and the brand. This is an important stage when buying franchises for sale in Australia. Considering the legal jargon, we recommend that you consult a legal professional at this stage.
Signing the Franchise Contract
Once you are sure about everything related to the franchise and you have made up your mind to buy the same, it’s time to sign the contract. The franchise contract is for a limited period of a few years, upon which you will have to renew your rights as the owner of the franchise unit.
After signing the dotted line, you will be given proper training about the company policies and how to run the franchise and train the staff. As a franchisee, you need to abide by the regulations set forth by the franchisor, or else it can be a breach of contract. You will get consistent support from the franchisor as you run the unit, as per the regulations.
We hope that this was an insightful and interesting read. For more information on the best franchise for sale in Sydney and other industry news, subscribe to https://www.businessfranchiseaustralia.com.au/, the leading franchise magazine and directory in Australia.