Before you take the plunge into buying a franchise business there are some must dos. The first on the list is to educate yourself about what you are really getting into. Research, reading and talking to people is a great start. Luckily for budding franchises there are very good resources – Start with the website “FranchiseEd” https://www.franchise-ed.org.au/ .
There is a lot of very good free information available for you to access – there are articles covering the process of buying a franchise, how to do your due diligence, questions to ask and many more helpful articles.
Many of us make major decisions on emotion, we buy the sales pitch and all we see are the positives. Business involves significant risk and when your families hard earned money is on the line, it pays to try and separate emotion from your business and consider the opportunities being presented in a very calculated way:
- Look far and wide for the right opportunity for you – There are many to consider – Don’t have a case of FOMO driving your decision.
- Do your due diligence and get very clear on the real cost to get into the franchise, most importantly, can you make a profit – do some budgets and projections and enlist the help of your accountant.
- Use the information in the Disclosure Document to start to really understand the franchise opportunity and talk to as many other franchisee’s as possible about their views on the franchise including training provided, franchisor support, marketing, fees.
- Understand the market you are going into – who are your competitors? What are the risks to that industry that may affect you?
- Get proper advice from qualified accountants, business advisors and lawyers who specialise in franchising- it will cost you money but if you can’t afford it – maybe you can’t afford to proceed – It is much better to write off some advice expenses, than to enter into binding contracts e.g.- the franchise agreement and perhaps a lease, which have a life of many years with consequent significant costs, which are very difficult to get out of if things don’t go according to plan.
If you need help finding your way, call Christine Matsinger on 5443 1800 for helpful support and guidance.
The information in this document represents general information and should not be relied on for your specific circumstances. If you require legal advice and assistance on the matters contained or associated in this document you should contact MMLaw. Please contact Christine Matsinger.